What are the tax implications of short term capital gains vs ordinary income in the cryptocurrency industry?

1 answers

• GiorgiaJul 26, 2022 · 3 years ago
  In the cryptocurrency industry, short term capital gains and ordinary income are subject to the same tax treatment. Both are taxed at the individual's ordinary income tax rate. However, it's important to note that the tax rates for short term capital gains can be higher compared to long term capital gains. Cryptocurrency investors should keep detailed records of their transactions and consult with a tax professional to ensure accurate reporting and compliance with tax laws. Remember, it's always better to be proactive and stay on top of your tax obligations to avoid any potential issues in the future.
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