Is Spending Crypto Taxable?
Spending crypto indeed triggers a taxable event. If you spend bitcoin to pay for a cup of coffee — say with 0.0003 BTC (as of the time of writing this article, that’s a $2.24 cup of coffee), you recognize any gain or loss on that amount of bitcoin.
The IRS has clarified that record keeping is a taxpayer responsibility, so if you plan to pay for goods or services with crypto, you should keep a log of your spends or use a crypto tax platform to keep track of your spends.
If you need to add spends, you can use the manual entry screen or our manual CSV template. Or if there are withdrawal transactions in your account that represent spends you made, you can change them to be spend transactions if necessary.
TokenTax does the work so you don’t have to.
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