What are the tax implications of selling 1 Bitcoin in the United States?

1 answers

• Dec 16, 2021 · 3 years ago
  Selling 1 Bitcoin in the United States can have tax implications. The IRS treats Bitcoin as property, so when you sell it, you may be subject to capital gains tax. The tax rate will depend on how long you held the Bitcoin before selling. If you held it for less than a year, it will be considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it will be considered a long-term capital gain and taxed at a lower rate. Make sure to keep track of the purchase price and sale price of the Bitcoin, as well as any fees incurred during the transaction, as these will be used to calculate your capital gains or losses. Consult a tax professional for specific advice based on your individual circumstances.
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