Are there any tax implications when closing a fidelity brokerage account to invest in digital currencies?

3 answers

• Dec 18, 2021 · 3 years ago
  Closing a fidelity brokerage account to invest in digital currencies may have tax implications. It is important to consult with a tax professional to understand the specific implications based on your individual circumstances. Generally, when you sell investments in a brokerage account, you may be subject to capital gains tax. The tax rate will depend on how long you held the investments and your income level. Additionally, if you withdraw funds from your brokerage account to invest in digital currencies, you may trigger taxable events. It is crucial to keep track of your transactions and report them accurately to comply with tax regulations.
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• Dec 18, 2021 · 3 years ago
  Closing your fidelity brokerage account and investing in digital currencies can have tax implications. The IRS treats digital currencies as property, so when you sell or exchange them, you may incur capital gains or losses. If you held your investments for less than a year, the gains will be considered short-term and taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be considered long-term and taxed at a lower rate. It's important to keep records of your transactions and consult with a tax professional to ensure compliance with tax laws.
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• Dec 18, 2021 · 3 years ago
  Closing a fidelity brokerage account to invest in digital currencies can have tax implications. When you sell your investments, you may incur capital gains tax. The tax rate will depend on various factors such as your income level and how long you held the investments. It's important to keep track of your transactions and report them accurately to the IRS. If you're unsure about the tax implications, it's recommended to consult with a tax professional who can provide personalized advice based on your specific situation.
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