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What are the tax implications of buying and selling Shiba Inu in California?

avatarNeuron NazeerahDec 17, 2021 · 3 years ago1 answers

I'm considering buying and selling Shiba Inu cryptocurrency in California, but I'm unsure about the tax implications. Can you provide some insights into the tax rules and regulations related to buying and selling Shiba Inu in California?

What are the tax implications of buying and selling Shiba Inu in California?

1 answers

  • avatarDec 17, 2021 · 3 years ago
    As an expert in the field, I can tell you that buying and selling Shiba Inu in California can have tax implications. In California, cryptocurrencies like Shiba Inu are treated as property, which means that any gains or losses from buying and selling would be subject to capital gains tax. The tax rate depends on how long you held the Shiba Inu before selling. If you held it for less than a year, it would be considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it would be a long-term capital gain and taxed at a lower rate. It's always a good idea to consult with a tax professional to ensure you're following the correct tax regulations in California.