How does California calculate capital gains tax for cryptocurrency?

1 answers

• Dec 17, 2021 · 3 years ago
  In California, capital gains tax for cryptocurrency is calculated based on the same principles as for other assets. The taxable gain is determined by subtracting the purchase price from the selling price of the cryptocurrency. If you hold the cryptocurrency for less than a year, it is considered a short-term capital gain and taxed at your regular income tax rate. If you hold it for more than a year, it is considered a long-term capital gain and taxed at a lower rate. The specific tax rates for long-term capital gains depend on your income level. It's important to keep accurate records of your transactions and consult with a tax professional to ensure compliance with California tax laws.
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