How can I calculate capital gains on my Bitcoin investments?

1 answers

• Dec 30, 2021 · 3 years ago
  Calculating capital gains on your Bitcoin investments is crucial for tax purposes. To calculate your capital gains, you'll need to know the purchase price of your Bitcoin and the selling price. Subtract the purchase price from the selling price to get the capital gains. If you held the Bitcoin for less than a year, it will be considered short-term capital gains and taxed at your ordinary income tax rate. If you held it for more than a year, it will be considered long-term capital gains and taxed at a lower rate. It's important to keep track of your transactions and consult with a tax professional to ensure you're complying with the tax laws in your jurisdiction. Remember, accurate record-keeping is key when it comes to calculating capital gains on your Bitcoin investments.
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