What are the tax implications of rolling over a Merrill Lynch IRA into a cryptocurrency investment?

1 answers

• Nov 27, 2021 · 3 years ago
  Rolling over a Merrill Lynch IRA into a cryptocurrency investment can have tax implications. The IRS treats cryptocurrencies as property, so any gains or losses from their sale or exchange are subject to capital gains tax. This means that if you sell your cryptocurrencies at a profit, you'll need to report the gains on your tax return and pay taxes on them. However, if you sell at a loss, you may be able to deduct that loss from your taxable income. It's important to keep detailed records of your cryptocurrency transactions and consult with a tax professional to ensure you're accurately reporting your gains and losses. Additionally, it's worth noting that different countries may have different tax laws and regulations regarding cryptocurrencies, so it's important to research and understand the tax implications specific to your jurisdiction.
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