Capital Gains and Losses (IRS Definition)

The sale or exchange of digital Reporting Requirements: Taxpayers must maintain detailed records of digital asset transactions, including date, U.S. dollar value, and purpose.

What You Need To Know

For more detailed guidance: IRS Publication 544: "Sales and Other Dispositions of Assets" IRS Publication 550: "Investment Income and Expenses" IRS Schedule D Instructions Understanding capital gains and losses is essential for effective tax planning and compliance with IRS regulations and laws will drastically change these rules.