Crypto Capital Gains

So, if you bought Bitcoin, does that make you an astronaut?  I’m Amy E. Feldman.

In a widely mocked ad for a cryptocurrency app, actor Matt Damon compares those who “almost achieved” to the intrepid adventurers like astronauts who actually achieved, and reminds us that fortune favors the brave.  So, I guess the lesson of the ad is, buy Bitcoin or you’ll never become an astronaut?  Not clear.

But the lesson from the IRS is: brave or not, you still need to report that crypto fortune.  If you sold cryptocurrency at a higher price than you bought it for, or used it to pay for goods or services, the amount you earned when you sold it is considered taxable capital gains.  And if someone paid you in crypto, you have to declare that as income, so talk to your financial planner before you file your taxes this year.  If you got paid to make a pompous ad for a crypto app, maybe talk to your agent.

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