What is the difference in capital gains tax rates for short term and long term investments in cryptocurrencies?

1 answers

• Mar 16, 2022 · 3 years ago
  When it comes to capital gains tax rates for short term and long term investments in cryptocurrencies, the difference lies in the holding period. Short term investments, held for less than a year, are subject to higher tax rates as they are considered part of the individual's ordinary income. On the other hand, long term investments, held for more than a year, are subject to lower tax rates. In the United States, the long term capital gains tax rates range from 0% to 20%, depending on the individual's income bracket. It's important to keep track of your investment holding periods and consult with a tax professional to ensure accurate reporting and compliance with tax laws.
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