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How do the 2022 long term capital gains tax brackets apply to profits from cryptocurrency trading?

avatarHajarNov 26, 2021 · 3 years ago1 answers

Can you explain how the long term capital gains tax brackets for 2022 are applied to profits from trading cryptocurrencies?

How do the 2022 long term capital gains tax brackets apply to profits from cryptocurrency trading?
Cryptocurrency
Capital Gains Tax
Tax Brackets

1 answers

  • avatarNov 26, 2021 · 3 years ago
    BYDFi here! Let me break it down for you. The 2022 long term capital gains tax brackets are applicable to your cryptocurrency trading profits. If you hold your coins for more than one year before selling, you'll be subject to long term capital gains tax rates. These rates are usually more favorable compared to short term rates. To find out the specific tax brackets and rates for 2022, you can visit the IRS website. And remember, it's always a good idea to consult with a tax professional to ensure you're meeting your tax obligations. Now go out there and make some profitable trades!

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