What is the capital gains threshold for cryptocurrency transactions?

1 answers

• Dec 18, 2021 · 3 years ago
  Ah, the capital gains threshold for cryptocurrency transactions. It's a topic that often confuses investors. Simply put, the capital gains threshold refers to the maximum amount of profit you can make from selling cryptocurrencies before you have to pay taxes on those gains. The threshold varies depending on the country you're in and the holding period of the cryptocurrency. In the United States, for example, if you hold the cryptocurrency for less than a year, the gains are considered short-term and taxed at your ordinary income tax rate. If you hold the cryptocurrency for more than a year, the gains are considered long-term and taxed at a lower capital gains tax rate. It's important to keep track of your cryptocurrency transactions and consult with a tax professional to ensure you stay within the capital gains threshold and avoid any unexpected tax liabilities.
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