What are the tax implications of selling crypto in the United States?

1 answers

• Dec 17, 2021 · 3 years ago
  When it comes to selling cryptocurrency in the United States, you need to be aware of the tax implications. The IRS treats cryptocurrency as property, which means that selling it can trigger capital gains tax. The tax rate depends on how long you held the cryptocurrency before selling it. If you held it for less than a year, it is considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it is considered a long-term capital gain and taxed at a lower rate. Make sure to accurately report your crypto sales on your tax return to avoid any penalties or legal issues.
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