USFCX doesn’t provide tax advice.

We put this guide together for informational purposes only and it shouldn’t be considered tax advice or an individualized recommendation. Please consult a tax-planning professional regarding your personal tax circumstances.

At USFCX, we see crypto as the foundation for tomorrow’s open financial system — but it’s also a part of today’s traditional one. To answer the many questions on crypto and taxes, the IRS has issued crypto tax guidance.

While we can’t give tax advice, we want to make crypto easier to buy, sell, and use. This guide is our way of helping you better understand your 2021 crypto tax obligations.

The IRS holds you responsible for reporting all income and transactions whether you receive a tax form from a crypto exchange or not. Exchanges like USFCX provide transaction history to every customer, but only customers meeting certain mandated thresholds will also receive an IRS Form 1099-K.

Crypto taxes are treated differently country-to-country. This guide only covers the US. Unless you happen to have some US tax obligations be sure to consult your local country tax advisor to confirm your tax reporting obligations at your home jurisdiction.

All crypto sells, conversions, payments, donations, and earned income are reportable by US taxpayers.

The reason that buying and selling crypto is taxable is because the IRS identifies crypto as property, not currency. As a result, tax rules that apply to property (but not real estate tax rules) transactions, like selling collectible coins or vintage cars that can appreciate in value, also apply to bitcoin, ethereum, and other cryptocurrencies.

Failure to report income, including income from the sale of crypto, could result in interest on unpaid taxes and penalties. Please consult with a tax-planning professional regarding your individual reporting obligations.