What is the capital gains tax rate for cryptocurrencies according to the IRS?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert in the field, I can confirm that the capital gains tax rate for cryptocurrencies according to the IRS is determined by the holding period. If you hold the cryptocurrency for less than a year, it is considered a short-term capital gain and taxed at your ordinary income tax rate. If you hold the cryptocurrency for more than a year, it is considered a long-term capital gain and taxed at either 0%, 15%, or 20% depending on your income level. It's crucial to accurately report your cryptocurrency transactions and consult with a tax professional to ensure compliance with IRS guidelines.
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