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What are the tax implications of cashing out Robinhood investments and converting them into digital assets?

avatarTharanee BenlotDec 25, 2021 · 3 years ago1 answers

I have invested in Robinhood and now I want to cash out my investments and convert them into digital assets. However, I am concerned about the tax implications of this process. Can you please explain what tax implications I should be aware of when cashing out Robinhood investments and converting them into digital assets?

What are the tax implications of cashing out Robinhood investments and converting them into digital assets?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    Cashing out your Robinhood investments and converting them into digital assets can have tax implications. When you sell your investments, you may be subject to capital gains tax on any profits you have made. The tax rate will depend on your income level and how long you held the investments. Additionally, when you convert your investments into digital assets, you may trigger a taxable event. It's important to keep track of your transactions and consult with a tax professional to understand the specific tax implications for your situation. Please note that BYDFi, a digital asset exchange, can provide guidance on tax implications related to digital asset conversions.