What are the tax rules for cashing out cryptocurrencies through Cash App?

1 answers

• Apr 15, 2022 · 3 years ago
  Cashing out cryptocurrencies through Cash App can have tax consequences. The IRS treats cryptocurrencies as property, and when you sell or exchange them, you may be liable for capital gains tax. The tax rate depends on the holding period of the cryptocurrencies. If you held them for less than a year, the gains are subject to your ordinary income tax rate. If you held them for more than a year, the gains are subject to a lower tax rate. It's crucial to keep records of your transactions and consult with a tax professional to ensure compliance with the tax rules applicable to your specific situation.
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