How does the short term capital gains tax apply to cryptocurrency trading?

2 answers

• Feb 18, 2022 · 3 years ago
  Sure! When it comes to cryptocurrency trading, the short term capital gains tax applies to any profits made from selling cryptocurrencies that were held for less than a year. The tax rate is based on your income tax bracket, ranging from 10% to 37%. It's important to keep track of your trades and calculate your gains accurately to ensure compliance with tax laws. Consult a tax professional for personalized advice based on your specific situation.
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• Feb 18, 2022 · 3 years ago
  BYDFi does not provide tax advice, but generally speaking, the short term capital gains tax applies to cryptocurrency trading just like any other investment. It's important to consult with a tax professional to understand the specific rules and regulations that apply to your situation. They can help ensure that you are reporting your gains accurately and taking advantage of any available deductions or exemptions.
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