Are there any specific tax considerations for reporting cryptocurrency trades on Nadex?

1 answers

• Jan 14, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that when it comes to reporting cryptocurrency trades on Nadex, there are specific tax considerations that you should be aware of. The IRS treats cryptocurrencies as property, which means that any gains or losses from trading them are subject to capital gains tax. This tax is calculated based on the difference between the purchase price and the sale price of the cryptocurrency. If you hold your cryptocurrencies for less than a year before selling them, the gains will be considered short-term and taxed at your ordinary income tax rate. However, if you hold them for more than a year, the gains will be considered long-term and taxed at a lower rate. It's important to keep accurate records of your trades and consult with a tax professional to ensure that you are reporting your trades correctly and taking advantage of any available tax benefits.
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