Did You Make Money in Bitcoin? Here Are 2 Ways to Lower Your Tax Bill
Bitcoin has increased by more than 1,700% in 2017 alone, so it's fair to assume that there are many people who are sitting on some serious profits. Whether you've sold BTC at a profit or are continuing to hold on for the ride, or even if you've paid for things in BTC, you need to know the tax implications of cryptocurrencies, as well as two ways you could potentially reduce your tax bill.
The IRS has classified bitcoin, and other cryptocurrencies, as capital assets. This means that if you buy BTC at one price and sell it at a profit, you are taxed on the gain, just as if you had bought a stock that appreciated in value and then sold it.
Image Source: Getty Images.
Source: Fool.com