How crypto currency is taxed

Cryptocurrencies cryptocurrency investment

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When crypto is sold for profit, capital gains should be taxed as they would be on other assets. And purchases made with crypto should be subject. 1. Treat cryptocurrency like property. As mentioned, the IRS classifies cryptocurrency and other digital assets as property. Standard property. If you held a particular cryptocurrency for more than one year, you're eligible for tax-preferred, long-term capital gains, and the asset is taxed at 0%, 15%.