What are the short term and long term capital gains tax implications for cryptocurrency investors?

1 answers

• Kathryn RobertsonOct 08, 2023 · 2 years ago
  Hey there! If you're into cryptocurrency and making some gains, you should know about the tax implications. Short term capital gains are the profits you make from selling cryptocurrency within a year of buying it. These gains are taxed at your regular income tax rate, which can be a bummer if you're in a high tax bracket. On the flip side, long term capital gains are the profits you make from selling cryptocurrency after holding it for more than a year. These gains are taxed at lower rates, ranging from 0% to 20% depending on your income. Just make sure you keep track of your transactions and report them correctly to avoid any trouble with the taxman. If you need more specific advice, it's always a good idea to consult a tax professional.
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