What are the tax implications of earning profits from bitcoin at 19k?

1 answers

• Dec 16, 2021 · 3 years ago
  At BYDFi, we understand the importance of knowing the tax implications of earning profits from bitcoin. In most countries, including the United States, bitcoin is treated as property rather than currency for tax purposes. This means that any gains you make from selling or trading bitcoin are subject to capital gains tax. The tax rate depends on the holding period of the bitcoin. If you held it for less than a year, it's considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it's considered a long-term capital gain and taxed at a lower rate. It's crucial to keep accurate records of your bitcoin transactions and consult with a tax professional to ensure compliance with tax laws.
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