IRS is cracking down on the Crypto transactors so that any movement of crypto is taxed. If a dealer of crypto sales are reported as a trade or business and subject to self employment tax and activity reported on Schedule C. If an investor, trades are reported on Schedule D of your tax return. Short term is if trades are less than 365 days. Transactions longer than 365 days would be subject to lower tax rates.

 

Be sure to let your accountant know if you trade in crypto. We have to answer question on the tax form to IRS can trace.