You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return. Arizona residents can soon benefit from state-level tax treatment of crypto airdrops that differs from federal guidance.This handy guide will give you a complete statebystate breakdown of cryptocurrency sales and use tax laws and regulations. The IRS treats cryptocurrency as "property. " If you buy, sell or exchange cryptocurrency, you're likely on the hook for paying crypto taxes. Yes. When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. Below is a summary of what each state has done to regulate cryptocurrency and blockchain technology using its own authorities. Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. Allows a state agency to enter into an agreement with a cryptocurrency service provider to provide a method to accept cryptocurrency as a payment method.