How can I calculate capital gains tax on my cryptocurrency investments in New York?

1 answers

• Dec 19, 2021 · 3 years ago
  Calculating capital gains tax on cryptocurrency investments in New York is crucial for tax compliance. Here's a step-by-step guide. First, determine the cost basis of your cryptocurrency, which is the purchase price. Next, determine the fair market value of the cryptocurrency when you sold or exchanged it. The difference between the fair market value and the cost basis is your capital gain or loss. To calculate the tax, you'll need to know your holding period. If you held the cryptocurrency for less than a year, it's considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it's considered a long-term capital gain and taxed at a lower rate. It's always a good idea to consult with a tax professional to ensure accurate reporting and compliance with tax laws.
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