Are there any tax credits or deductions available for cash app users who file taxes on their cryptocurrency transactions?

1 answers

• Dec 27, 2021 · 3 years ago
  Definitely! Cash app users who file taxes on their cryptocurrency transactions can potentially claim tax credits or deductions. The IRS treats cryptocurrencies as property, so any gains or losses from buying or selling cryptocurrencies are subject to capital gains tax. If you held your cryptocurrencies for more than a year before selling, you may qualify for long-term capital gains tax rates, which are generally more favorable. Additionally, you may be able to deduct certain expenses related to your cryptocurrency transactions, such as transaction fees or the cost of using cash app. It's recommended to consult with a tax professional to ensure you're properly reporting your cryptocurrency transactions and maximizing your tax benefits.
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