What are the tax implications of buying FLXN stock with cryptocurrency?

3 answers

• Dec 29, 2021 · 3 years ago
  When you buy FLXN stock with cryptocurrency, it's important to understand the tax implications. In the eyes of the IRS, cryptocurrency is treated as property, not currency. Therefore, any gains or losses from the sale of cryptocurrency are subject to capital gains tax. The same applies when you use cryptocurrency to purchase stocks. If the value of your cryptocurrency has increased since you acquired it, you may have to pay capital gains tax on the difference. It's recommended to consult with a tax professional to ensure compliance with tax laws.
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• Dec 29, 2021 · 3 years ago
  Buying FLXN stock with cryptocurrency can have tax implications. Cryptocurrency is considered property by the IRS, so when you use it to purchase stocks, it's treated as if you sold the cryptocurrency first and then used the proceeds to buy the stocks. This means that any gains you made from the cryptocurrency may be subject to capital gains tax. The tax rate depends on how long you held the cryptocurrency before selling it. If you held it for less than a year, it's considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it's considered a long-term capital gain and taxed at a lower rate. It's important to keep track of your cryptocurrency transactions and consult with a tax professional for accurate advice.
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• Dec 29, 2021 · 3 years ago
  When it comes to the tax implications of buying FLXN stock with cryptocurrency, it's important to consider the regulations set by the IRS. Cryptocurrency is treated as property, and any gains or losses from the sale or exchange of cryptocurrency are subject to capital gains tax. This means that if you use cryptocurrency to purchase FLXN stock, you may be liable for capital gains tax on the difference between the cost basis of the cryptocurrency and its fair market value at the time of the transaction. It's crucial to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with tax laws.
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