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TagsWhat are the tax implications of online cryptocurrency trading in the US?
Ken jhi CarilloDec 30, 2021 · 3 years ago1 answersCan you explain the tax implications of engaging in online cryptocurrency trading in the United States? I would like to understand how the IRS views cryptocurrency trading and what tax obligations individuals have when trading cryptocurrencies online.
1 answers
- BYDFi is here to shed some light on the tax implications of online cryptocurrency trading in the US. The IRS treats cryptocurrencies as property, not currency, which means that any gains or losses from trading cryptocurrencies online are subject to capital gains tax. If you hold your cryptocurrencies for less than a year before selling, the gains will be taxed as short-term capital gains, which are taxed at your ordinary income tax rate. If you hold your cryptocurrencies for more than a year, the gains will be taxed as long-term capital gains, which have lower tax rates. Make sure to keep accurate records of your transactions and report them correctly on your tax return to avoid any issues with the IRS.Dec 30, 2021 · 3 years ago
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