How does day trading crypto on Robinhood affect my taxes?

1 answers

• Jun 13, 2022 · 3 years ago
  When it comes to day trading crypto on Robinhood, it's important to consider the tax implications. The IRS treats cryptocurrency as property, which means that any gains or losses from day trading are subject to capital gains tax. If you hold a cryptocurrency for less than a year before selling it, the gains will be taxed at your ordinary income tax rate. However, if you hold it for more than a year, you may qualify for lower long-term capital gains tax rates. It's crucial to keep track of your trades and consult with a tax professional to accurately report your day trading activities and minimize your tax liability.
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