What are the tax implications of selling cryptocurrency and how does it relate to capital gains?

1 answers

• Feb 18, 2022 · 3 years ago
  Selling cryptocurrency can have tax implications, especially when it comes to capital gains. When you sell cryptocurrency, the difference between the purchase price and the selling price is considered a capital gain or loss. If you held the cryptocurrency for less than a year before selling, it is considered a short-term capital gain or loss, which is taxed at your ordinary income tax rate. If you held the cryptocurrency for more than a year, it is considered a long-term capital gain or loss, which is subject to different tax rates. It's important to keep track of your cryptocurrency transactions and consult with a tax professional to ensure you are reporting and paying the correct amount of taxes.
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