Enrolled Agent Exam [Part 1] 22, Virtual Currency and Cryptocurrency Taxation

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The IRS classifies virtual currency as property, meaning its use to buy goods or services is a taxable disposition. • Gains and losses from cryptocurrency transactions are reported on Form 8949 and Schedule D. • Income from mining is taxable as ordinary income at its fair market value on the date mined and may be subject to self-employment tax. • The basis in mined cryptocurrency is the amount included in income upon its creation. • The digital asset question on Form 1040 must be checked "yes" for most activities beyond simply buying and holding with U.S. dollars. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep