Do I Need to Pay a Tennessee Crypto Tax?
Finding Tennessee crypto tax information can be daunting. Cryptocurrencies and other decentralized technologies are new to the mainstream, and governments are still determining how to regulate it. Because of this, different regions of the country may treat cryptocurrencies differently as far as taxes and other regulations are concerned. Read on if you’d like to learn more about the crypto taxation system in Tennessee.
The Basics of Tennessee Crypto Tax
Here is the answer you came here for: Tennessee has not provided guidance on any unique tax considerations on cryptocurrency for its residents. Keep in mind that it’s important to consult a tax professional with knowledge of Tennessee taxes to determine what you may owe. Also note that all United States citizens involved in the sale, trade, or use of cryptocurrency are subject to IRS guidance on the medium.
Understanding National Crypto Regulations
While Tennessee doesn’t impose any crypto-specific taxes and regulations, you still need to understand that cryptocurrency is subject to the national guidelines as defined by the IRS. Digital currency is a complicated landscape; NFTs, cryptocurrency, and other blockchain-based technologies all find themselves in a similar situation as far as taxes are concerned. This doesn’t mean that they’re all treated equally, however.
NFTs, for example, find themselves occupying a space much more similar to works of art and other unique items, as opposed to actual currency. These items are classified as “collectibles.” Collectibles can be viewed as capital assets, but are taxed more aggressively than stocks and similar investments.
Cryptocurrencies, on the other hand, can be treated more like a financial investment than an actual currency. This is likely due to their volatile nature, and the latent possibility of large financial gains being made from buying and holding an amount of the currency. Cryptocurrencies and other financial investments can be subject to a capital gains tax, which means a tax imposed on your financial gains made when selling an asset at a higher value than it was purchased.
While these regulations are atypical compared to other forms of currency, the IRS guidance on cryptocurrency is important to understand before making a serious venture into the world of decentralized technologies. For more information, view the IRS’s official page on cryptocurrency transactions and, again, consult a tax professional for advice on your specific situation.
What Can I Do With My Crypto?
After understanding what the absence of a specified Tennessee crypto tax means for you, it’s time to get started with cryptocurrency. Where should you begin?
Learn More About Cryptocurrency and Its History
What even is cryptocurrency? That’s easy: it’s a decentralized currency utilizing blockchain technology, with each unit pointing to its own unique place on the blockchain. These currencies can be bought, sold, mined, or traded to realize financial gains, buy goods, or even just for fun. Where did cryptocurrency come from, though? That question is a little more nuanced.
Plainly, the first major cryptocurrency was Bitcoin, which was founded in 2009. From its humble beginnings, Bitcoin has been the inspiration for a large portion of cryptocurrencies today. Throughout the years, Bitcoin has remained as the most popular and recognizable cryptocurrency, and is most often the gateway for people looking to learn more about the subject. If you want to learn more about cryptocurrency and its beginning, check out our blog post on the history of cryptocurrency.
Crypto’s Trajectory in Tennessee
It’s important to understand a little more regarding crypto’s place in Tennessee.Tennessee is quickly making itself a beacon for technology and cryptocurrency in America’s south. In fact, Pelicoin now has five Bitcoin ATMs located in Memphis—all of which are available for access 24 hours a day, 7 days a week.
In fact, many businesses around Tennessee accept cryptocurrency as a form of payment now. National chains such as Home Depot and Starbucks have been accepting crypto payments for a while, but there are also local businesses like Crazy Italians have been leading the charge in the area, so Tennessee visitors and residents have options.
Turn Your Crypto to Cash and Vice Versa
You may feel motivated to engage more with cryptocurrency after you learn that there is no specified Tennessee crypto tax. If you want to get started with cryptocurrency, Pelicoin’s Bitcoin ATMs make it effortless to manage your digital wallet in a secure location.
With a cryptocurrency ATM, you can buy, sell, and trade cryptocurrency, as well as turn your crypto to cash on the spot. Pelicoin is dedicated to making the experience as accessible as possible to continue growing the cryptocurrency community in the Gulf South. Check out the full list of our locations to find one near you.
Get Involved in Your Community
Pelicoin has been able to find footing in Memphis and the surrounding area because of the location’s advanced interest in cryptocurrency and other cutting-edge technologies as of late. With many meetups for cryptocurrency enthusiasts and other related events, the residents of Tennessee have paved the way for cryptocurrency to become the next big thing.
Since there are several meetups and events focusing on crypto in Tennessee, use them as an opportunity that can both help you get a better grasp on cryptocurrency and its uses, and also to connect with like-minded people and open opportunities you weren’t aware of before. The most important part of any region’s cryptocurrency community is its members; if you want to see the crypto scene in your community grow, it’s important that you get involved in it yourself!
Take Advantage of the Tennessee Crypto Tax With Pelicoin
The lack of a dedicated Tennessee crypto tax may simplify the process of getting involved with this modern currency. Take advantage of this by using one of Pelicoin’s many ATM locations to manage your digital wallet in a secure and easily accessible location. If you want to learn more about ATMs for cryptocurrency and the locations we serve, check out our website. If there is a specific facet of crypto you’re interested in learning more about, browse our blog to see what we’ve written on the topic.