What are the tax implications of day trading crypto in the US?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that day trading crypto in the US can have tax implications. The IRS considers cryptocurrencies as property, which means any gains or losses from day trading activities are subject to capital gains tax. If you hold the crypto for less than a year, it will be considered short-term capital gains and taxed at your ordinary income tax rate. If you hold it for more than a year, it will be considered long-term capital gains and taxed at a lower rate. It's crucial to keep accurate records of your trades and report them correctly on your tax return to comply with the IRS regulations. For personalized advice, consult with a tax professional who specializes in cryptocurrency taxation.
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