How does the IRS treat cryptocurrency gains for tax purposes?

1 answers

• Nov 28, 2021 · 3 years ago
  At BYDFi, we understand that cryptocurrency gains can have tax implications. The IRS treats gains from cryptocurrency as taxable events, which means you'll need to report them on your tax return. The tax rate depends on how long you held the cryptocurrency. If you held it 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 important to consult a tax professional for advice on how to accurately report your cryptocurrency gains and ensure compliance with IRS regulations.
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