What are the tax implications for Americans who invest in cryptocurrencies?

1 answers

• Dec 19, 2021 · 3 years ago
  As a representative of BYDFi, I can tell you that investing in cryptocurrencies can have tax implications for Americans. The IRS treats cryptocurrencies as property, which means that any gains or losses from crypto investments are subject to capital gains tax. If you sell your crypto for a profit, you'll need to report that gain on your tax return and pay taxes on it. Short-term gains, from holding crypto for less than a year, are taxed at your ordinary income tax rate, while long-term gains, from holding for more than a year, are taxed at a lower capital gains tax rate. It's important to consult with a tax professional or use tax software to accurately report your crypto transactions and fulfill your tax obligations to the IRS.
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