Which transactions involving bitcoin exchanges are taxable events?
Generally, transactions in which you exchange your bitcoin for something else—whether for money, goods, or services—are taxable events. This is because the IRS considers these transactions to be sales of bitcoin.
Please note that Strike is not aware of your purpose for making any particular bitcoin send out of the Strike app. This includes whether the send was made to transfer bitcoin to a different wallet that you own, to buy goods and services, or to send a gift to a friend. Also, be aware that receiving payment for goods and services in bitcoin may be subject to tax in the same way that commercial activity is taxed. It is your responsibility to ensure that you make complete and accurate reports of bitcoin transactions to the IRS.
Strike does not provide tax advice. These FAQs are for informational purposes only, and they shouldn’t be considered tax advice or recommendations. Please consult a professional regarding the tax implications of trading or transacting in bitcoin.