What are the tax implications of trading cryptocurrencies versus equities and futures?

1 answers

• ItsANameTooOct 16, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that the tax implications of trading cryptocurrencies versus equities and futures can be quite different. Cryptocurrencies are treated as property by the IRS, which means that every time you trade or sell a cryptocurrency, it's considered a taxable event. This means you'll need to report any gains or losses on your tax return. On the other hand, equities and futures are subject to capital gains tax. The tax rate depends on how long you hold the asset before selling it. Short-term capital gains are taxed at your ordinary income tax rate, while long-term capital gains are taxed at a lower rate. It's important to keep accurate records of your trades and consult with a tax professional to ensure compliance with the tax laws.
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