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The Easiest Way To Cash Out Crypto TAX FREEVirtual Currency. The IRS announced that convertible virtual currencies, such as Bitcoin, would be treated as property and not as currency, thus creating. Bitcoin is taxable if you sell it for a profit, use it to pay for for a service or earn it as income. You report your transactions in U.S. Yes, you'll pay tax on cryptocurrency gains and income in the US. The IRS is clear that crypto may be subject to Income Tax or Capital Gains Tax, depending on.
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