What are the tax implications of using Fidelity to invest in cryptocurrencies?

3 answers

• May 20, 2022 · 3 years ago
  Investing in cryptocurrencies through Fidelity can have tax implications that you need to be aware of. When you buy or sell cryptocurrencies, it is considered a taxable event, which means you may be required to report it on your tax return. The tax treatment of cryptocurrencies can vary depending on your country and jurisdiction. In the United States, for example, the IRS treats cryptocurrencies as property, which means that capital gains tax may apply when you sell them. It's important to keep track of your transactions and consult with a tax professional to ensure you comply with the tax laws.
  602

  301
• May 20, 2022 · 3 years ago
  Using Fidelity to invest in cryptocurrencies can have tax implications that you should consider. Cryptocurrencies are treated as property by the IRS, so buying or selling them can trigger capital gains tax. If you hold cryptocurrencies for less than a year before selling, the gains may be subject to short-term capital gains tax, which is typically higher than long-term capital gains tax. However, if you hold them for more than a year, you may qualify for the lower long-term capital gains tax rate. It's important to keep accurate records of your transactions and consult with a tax advisor to understand your specific tax obligations.
  639

  213
• May 20, 2022 · 3 years ago
  Investing in cryptocurrencies through Fidelity can have tax implications that you should be aware of. The tax treatment of cryptocurrencies can vary depending on your country and jurisdiction. In some countries, cryptocurrencies are considered as assets subject to capital gains tax. However, it's important to note that tax laws and regulations are constantly evolving, so it's always a good idea to consult with a tax professional for the most up-to-date information. Additionally, platforms like BYDFi can provide resources and tools to help you track your cryptocurrency transactions and calculate your tax obligations accurately.
  634

  159