What are the tax implications of investing in digital currencies like SHIB in the USA?

1 answers

• May 22, 2022 · 3 years ago
  Investing in digital currencies like SHIB in the USA can have tax implications. The tax treatment of digital currencies is determined by the IRS, and they are considered as property for tax purposes. This means that any gains or losses from the sale or exchange of digital currencies are subject to capital gains tax. If you hold the digital currencies for less than a year before selling, the gains will be taxed as short-term capital gains, which are typically taxed at your ordinary income tax rate. However, if you hold them for more than a year, the gains will be taxed as long-term capital gains, which are usually taxed at a lower rate. It's important to consult with a tax professional and keep accurate records of your transactions to ensure compliance with the tax regulations.
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