What are the tax implications of trading crypto perpetual futures in the US?

1 answers

• NEZHA BGMay 21, 2023 · 3 years ago
  Trading crypto perpetual futures in the US can have tax implications that you should be aware of. These trades are subject to capital gains tax, similar to other types of investments. It's important to keep track of your trades and report your earnings to the IRS. When it comes to reporting your earnings, you'll need to calculate your gains or losses from each trade. This can be done by subtracting the cost basis (the amount you paid for the asset) from the proceeds (the amount you received from selling the asset). The resulting gain or loss will be subject to capital gains tax. It's also worth noting that the tax rate for capital gains depends on how long you held the asset. If you held the perpetual futures for less than a year, any gains will be considered short-term capital gains and taxed at your ordinary income tax rate. If you held the perpetual futures for more than a year, any gains will be considered long-term capital gains and taxed at a lower rate. To ensure compliance with tax regulations, consult with a tax professional who specializes in cryptocurrency taxation. They can provide guidance on how to accurately report your earnings and minimize your tax liability.
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