What are the tax implications of etrading cryptocurrency?

1 answers

• May 14, 2022 · 3 years ago
  As a representative of BYDFi, I can provide some insights into the tax implications of etrading cryptocurrency. The IRS treats cryptocurrencies as property, not currency, which means that any gains or losses from trading cryptocurrencies are subject to capital gains tax. The tax rate will depend on how long you hold the cryptocurrencies before selling. If you hold them for less than a year, the gains will be considered short-term and taxed at your ordinary income tax rate. If you hold them for more than a year, the gains will be considered long-term and taxed at a lower rate. Remember to keep accurate records of your trades and consult with a tax professional for personalized advice.
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