What are the tax implications for John Hancock IRA customers who invest in digital currencies?

1 answers

• Nov 27, 2021 · 3 years ago
  Investing in digital currencies through a John Hancock IRA account can have tax implications. The IRS treats digital currencies as property, so any gains or losses from selling or exchanging them are subject to capital gains tax. If you hold your digital currencies for less than a year before selling or exchanging them, the gains will be taxed as short-term capital gains, which are typically taxed at your ordinary income tax rate. However, if you hold them for more than a year, the gains will be taxed as long-term capital gains, which are usually taxed at a lower rate. It's important to keep accurate records of your digital currency transactions and consult with a tax professional to ensure compliance with IRS regulations and optimize your tax strategy.
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