Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by gamblor956 on Saturday September 26, 2020 @11:33PM
(#24604033)
Cryptocurrency is considered a capital asset, so there are 2 taxes that apply to a cryptocurrency transaction:
(1) normal income taxes, to the person receiving the crypto, and (2) capital gain taxes (or losses) to the person sending the crypto, because capital taxes apply to capital assets when they are disposed.
The nature of the transaction is irrelevant to (2).
The nature of the transaction is irrelevant to (2).