How does modified adjusted gross income affect the taxation of digital currencies?

3 answers

• a51zxApr 12, 2023 · 2 years ago
  Modified adjusted gross income (MAGI) can have an impact on the taxation of digital currencies. The tax implications vary depending on an individual's MAGI level. For individuals with a lower MAGI, digital currency transactions may be subject to capital gains tax when they are sold or exchanged. However, for individuals with a higher MAGI, digital currency transactions may be subject to ordinary income tax rates. It's important for individuals to consult with a tax professional to understand their specific tax obligations based on their MAGI and digital currency transactions.
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• Sukrit BhattacharyaSep 24, 2020 · 5 years ago
  When it comes to the taxation of digital currencies, modified adjusted gross income (MAGI) plays a significant role. Individuals with a lower MAGI may be eligible for certain tax benefits, such as the long-term capital gains tax rate, which can be lower than the ordinary income tax rate. On the other hand, individuals with a higher MAGI may be subject to the ordinary income tax rate for their digital currency transactions. It's crucial for taxpayers to accurately calculate their MAGI and consult with a tax advisor to ensure compliance with the tax laws and regulations.
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• Dennis van VugtFeb 02, 2021 · 4 years ago
  At BYDFi, we understand that modified adjusted gross income (MAGI) can have an impact on the taxation of digital currencies. The specific tax implications for individuals with different levels of MAGI can vary. Generally, individuals with a lower MAGI may be subject to capital gains tax on their digital currency transactions, while individuals with a higher MAGI may be subject to ordinary income tax rates. It's important for individuals to consult with a tax professional or utilize tax software to accurately calculate their MAGI and understand their tax obligations related to digital currencies.
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