The IRS has stated that for US federal income tax purposes, bitcoin is considered property. General tax principles applicable to property transactions therefore apply to transactions in bitcoin. This means that you must report gains and losses on bitcoin transactions in the relevant tax year. Those gains and losses may be used to determine how much federal income tax you owe.

Strike does not provide tax advice. These FAQs are for informational purposes only and shouldn’t be considered tax advice or recommendations. Please consult a professional regarding the tax implications of buying and selling bitcoin.