How does the Illinois capital gains tax apply to profits made from trading cryptocurrencies in 2022?

1 answers

• Dec 15, 2021 · 3 years ago
  As an expert in the field, I can tell you that the Illinois capital gains tax applies to profits made from trading cryptocurrencies in 2022. Cryptocurrencies are treated as property, so any gains from trading them are subject to capital gains tax. The tax rate will depend on your income bracket and the holding period of the cryptocurrency. Short-term gains, from assets held for less than a year, are taxed at the individual's ordinary income tax rate. Long-term gains, from assets held for more than a year, are subject to the capital gains tax rate, which varies based on income. It's important to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with the tax laws in Illinois.
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