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New IRS 2018 Tax Code Screws Crypto Traders!Income from transfer of virtual digital assets such as crypto, NFTs will be taxed at 30%. 2. No deduction, except the cost of acquisition, will. It looks like will be a landmark year when it comes to the IRS and taxing cryptocurrency gains. � The IRS treats cryptocurrency as property. If you were paid for goods or services in bitcoin, it gets taxed as ordinary income. (It technically is income, just in a different currency.).