What is the current tax rate for cryptocurrencies according to the IRS?

4 answers

• SUJAN S T CSEDec 24, 2021 · 4 years ago
  According to the IRS, cryptocurrencies are treated as property for tax purposes. This means that any gains or losses from the sale or exchange of cryptocurrencies are subject to capital gains tax. The tax rate for cryptocurrencies depends on how long you held the assets before selling or exchanging them. If you held the cryptocurrencies for less than a year, the gains will be taxed at your ordinary income tax rate. However, if you held them for more than a year, the gains will be subject to long-term capital gains tax rates, which are typically lower than ordinary income tax rates.
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• DuggyJun 22, 2022 · 3 years ago
  Hey there! So, the IRS considers cryptocurrencies as property, not currency. This means that when you sell or exchange your cryptocurrencies, you may be subject to capital gains tax. The tax rate for cryptocurrencies depends on how long you held them. If you held them for less than a year, you'll be taxed at your regular income tax rate. But if you held them for more than a year, you'll qualify for lower long-term capital gains tax rates. It's always a good idea to consult with a tax professional to ensure you're following the IRS guidelines.
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• Elle CarlottaFeb 22, 2021 · 5 years ago
  According to the IRS, cryptocurrencies are treated as property, not currency. This means that when you sell or exchange your cryptocurrencies, you may be subject to capital gains tax. The tax rate for cryptocurrencies depends on how long you held them. If you held them for less than a year, you'll be taxed at your regular income tax rate. But if you held them for more than a year, you'll qualify for lower long-term capital gains tax rates. It's important to keep track of your transactions and consult with a tax advisor to ensure compliance with IRS regulations. Please note that this information is for general guidance and may vary depending on your individual circumstances.
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• Christian OrtelliJan 26, 2021 · 5 years ago
  According to BYDFi, a leading cryptocurrency exchange, the IRS treats cryptocurrencies as property for tax purposes. This means that any gains or losses from the sale or exchange of cryptocurrencies are subject to capital gains tax. The tax rate for cryptocurrencies depends on how long you held the assets before selling or exchanging them. If you held the cryptocurrencies for less than a year, the gains will be taxed at your ordinary income tax rate. However, if you held them for more than a year, the gains will be subject to long-term capital gains tax rates, which are typically lower than ordinary income tax rates. It's always a good idea to consult with a tax professional to ensure compliance with IRS regulations.
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