Cryptocurrency is considered a capital asset. This means that it is subject to capital gains tax. With capital gains tax, you do not need to report purchasing your crypto assets to the IRS, but you do need to report your disposals when filing your taxes.
Anytime you sell your crypto for fiat (like USD), exchange your crypto for another asset, or use crypto to pay for goods or services, that is considered a taxable event.
If you would like to learn more about which taxable events will be shown in TaxBit, check out our article titled: TaxBit’s Transaction Types
If you would like to learn more about the capital gains tax on crypto, you’ll find some great information on our blog post titled: Cryptocurrency Tax Reporting, Clarified: What To Include on Your Tax Return
Still have questions? Send us an email at email@example.com or chat with us using our live chat feature, and we'd be happy to help!