If you own a cryptocurrency like Bitcoin, and you’re ready to sell it, you need to know how that might affect your yearly taxes. The selling part is easy. If you have an account with a major exchange or a bank like SoFi , you have many options for how you want to execute a trade and what to do with the proceeds. These apps will also generate your year-end tax forms (generally a Form 1099-DA) to make it easy to calculate exactly what you owe. Bitcoin and other cryptocurrencies are treated as digital assets , which the IRS describes as “any digital representation of value that is recorded on a cryptographically secured distributed ledger, or any similar technology.”  As assets, selling them makes them subject to capital gains taxes, rather than adding to your taxable income. How Bitcoin capital gains taxes work Capital gains tax is, as the name implies, a tax on the gain in value between when you bought an asset and when you sold it.…