How does Michigan tax long-term capital gains on digital currencies?

3 answers

• May 29, 2022 · 3 years ago
  In Michigan, long-term capital gains on digital currencies are subject to state income tax. The tax rate for long-term capital gains in Michigan is based on your total income and can range from 4.25% to 6.45%. It's important to note that Michigan follows federal tax rules when it comes to determining the holding period for long-term capital gains, which is generally one year or more. Make sure to consult a tax professional or refer to the Michigan Department of Treasury for specific guidance on reporting and paying taxes on your digital currency investments.
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• May 29, 2022 · 3 years ago
  When it comes to long-term capital gains on digital currencies in Michigan, the state follows the same rules as federal tax regulations. This means that if you hold your digital currencies for more than one year before selling, you may qualify for the lower long-term capital gains tax rate. However, it's important to keep accurate records of your transactions and consult with a tax professional to ensure compliance with Michigan tax laws.
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• May 29, 2022 · 3 years ago
  As a representative of BYDFi, I can provide some insights into the taxation of long-term capital gains on digital currencies in Michigan. Similar to other states, Michigan taxes long-term capital gains on digital currencies based on your total income. The tax rate can vary depending on your income bracket, ranging from 4.25% to 6.45%. It's crucial to keep track of your digital currency transactions and consult with a tax advisor to ensure accurate reporting and compliance with Michigan tax laws.
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