How does tax on capital gains apply to cryptocurrency investments?

1 answers

• Dec 28, 2021 · 3 years ago
  As a representative from BYDFi, I can provide some insights into the tax implications of cryptocurrency investments. Similar to other countries, the tax on capital gains from cryptocurrency investments applies to individuals in the United States. The tax rate depends on the holding period of the cryptocurrency. If held for less than a year, it is considered a short-term capital gain and taxed at the individual's ordinary income tax rate. If held for more than a year, it is considered a long-term capital gain and taxed at a lower rate. It's important for investors to keep track of their cryptocurrency transactions and consult with a tax professional to ensure compliance with tax regulations.
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