What are the short term capital gains tax implications for cryptocurrency in California?

3 answers

• Nov 26, 2021 · 3 years ago
  When it comes to cryptocurrency, the short term capital gains tax implications in California are similar to those for other types of investments. If you sell your cryptocurrency within one year of acquiring it, any profits you make will be subject to short term capital gains tax. The tax rate will depend on your income bracket. It's important to keep track of your cryptocurrency transactions and report them accurately on your tax return.
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• Nov 26, 2021 · 3 years ago
  Cryptocurrency is treated as property by the IRS, which means that capital gains tax applies when you sell it. In California, short term capital gains are taxed at the same rate as your ordinary income. This means that if you're in a higher income bracket, you'll pay a higher tax rate on your short term capital gains from cryptocurrency.
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• Nov 26, 2021 · 3 years ago
  According to BYDFi, a digital currency exchange, the short term capital gains tax implications for cryptocurrency in California are determined by the individual's income bracket. If you're in a higher income bracket, you'll pay a higher tax rate on your short term capital gains. It's important to consult with a tax professional to ensure you're accurately reporting and paying your taxes on cryptocurrency transactions.
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