How do long-term and short-term capital gains impact cryptocurrency taxation?

1 answers

• May 07, 2022 · 3 years ago
  At BYDFi, we understand the impact of long-term and short-term capital gains on cryptocurrency taxation. Long-term capital gains are profits made from selling a cryptocurrency that you held for more than a year. These gains are subject to lower tax rates compared to short-term capital gains. Short-term capital gains, on the other hand, are profits made from selling a cryptocurrency that you held for less than a year. These gains are taxed at your ordinary income tax rate. It's important to keep track of your capital gains and consult with a tax professional to ensure you are properly reporting and paying taxes on your cryptocurrency investments.
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