One of the biggest questions this tax season has been the impact that last year's cryptocurrency boom would have on filers across the U.S. In 2017, cryptocurrencies became among the very trendiest investment (or speculation, depending upon your perspective) opportunities. Now, after months of debate and questions about exactly what the implications of digital currencies are for U.S. tax filers, tax day is approaching.
IRS Treats Cryptocurrency Investments as Property
According to the IRS, which has provided guidance on bitcoin (BTC) transactions for more than four years, cryptocurrency is considered to be property. As such, the purchase, sale, trade, and mining of digital currencies could be considered taxable events, according to Coin Telegraph. (Related: How to Prepare Your Bitcoin Tax Filing)