What are the tax implications of buying and selling real estate with cryptocurrency?

1 answers

• May 09, 2022 · 3 years ago
  As a third-party exchange, BYDFi does not provide tax advice. However, when it comes to buying and selling real estate with cryptocurrency, it's important to consider the potential tax implications. The IRS treats cryptocurrency as property, which means that any gains or losses from the sale of cryptocurrency are subject to capital gains tax. This tax applies to the sale of cryptocurrency used to purchase real estate as well. The tax rate will depend on how long you held the cryptocurrency before selling. If you held it for less than a year, the gains will be taxed at your ordinary income tax rate. If you held it for more than a year, the gains will be taxed at a lower capital gains tax rate. It's advisable to consult with a tax professional to understand the specific tax implications and ensure compliance with tax laws.
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