I’ve been trading and investing in cryptocurrency for a while now and I’m getting a bit confused about how taxes apply to my crypto activities. I understand that in many regions, cryptocurrencies are treated as property for tax purposes, but I’m not sure about the specifics. Can someone explain how taxes work when you buy, sell, or trade cryptocurrencies, and what kinds of records I need to keep for tax reporting? What happens if I receive crypto as payment or as a reward from mining or staking; how is that taxed?
I’m also curious about how losses are handled. If I sell my crypto at a loss, does this get treated in the same way as a loss from stocks, where it can offset other capital gains? And I’ve heard of something called a ‘wash sale’ in traditional stock trading; does this concept apply to crypto transactions too? It would be helpful to have some clarity on these issues so I can make sure I’m complying with tax regulations and not missing out on any potential deductions or obligations.