How can I avoid being taxed on money earned from cryptocurrency trading on cash app?

1 answers

• Jan 14, 2022 · 3 years ago
  At BYDFi, we understand the importance of tax compliance when it comes to cryptocurrency trading. While I can't provide specific tax advice, I can offer some general information. Cryptocurrency trading is often subject to taxation, and it's important to be aware of the tax laws in your jurisdiction. In the United States, for example, the IRS treats cryptocurrencies as property, which means that any profits made from trading are subject to capital gains tax. However, there are strategies you can consider to potentially minimize your tax liability. One option is to hold your cryptocurrencies for more than a year to qualify for long-term capital gains tax rates. Another option is to consult with a tax professional who specializes in cryptocurrency taxation to explore any potential deductions or credits you may be eligible for. Remember to always comply with the relevant tax laws and seek professional advice when needed.
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