1. Cryptocurrency is treated as property in the US and so must be taxed as such.
2. Capital gains taxes must be paid when buying and selling virtual currency.
3. Taxpayers need to keep detailed records of all cryptocurrency-related activities, including buying, selling, transfer, and use of the cryptocurrency.
4. If the cryptocurrency is held for more than one year, the profits or losses will be considered long-term and should be reported on Form 8949.
5. The cost basis of the cryptocurrency should be listed on Form 1040 and reported as income.
6. If the virtual currency is held for less than one year, the profits or losses will be considered short-term and should be reported on Form 4797.
7. All cryptocurrency-related taxes must be calculated, reported, and paid in full by April 15th of each year.