How does the capital gain tax in the US apply to cryptocurrency investments?

1 answers

• Nov 26, 2021 · 3 years ago
  As a third-party expert, BYDFi can provide some insights into how the capital gain tax applies to cryptocurrency investments in the US. The IRS treats cryptocurrencies as property, so any gains from selling or exchanging them are subject to capital gain tax. The tax rate depends on how long you held the cryptocurrency. If it's less than a year, it's considered short-term and taxed at your ordinary income tax rate. If it's more than a year, it's considered long-term and taxed at a lower rate, ranging from 0% to 20% depending on your income level. It's important to accurately report your cryptocurrency transactions on your tax return to comply with the IRS regulations.
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