Are there any exemptions or special rules for long term capital gains tax on crypto?

3 answers

• Michel N'choOct 28, 2020 · 5 years ago
  Yes, there are exemptions and special rules for long term capital gains tax on cryptocurrencies. One exemption is the 0% tax rate for individuals in the lowest income tax bracket. If your taxable income falls within this bracket, you won't owe any taxes on your long term capital gains from crypto. Additionally, there is a special rule known as the 'like-kind exchange' that allows you to defer taxes on your crypto gains by reinvesting them into another cryptocurrency. However, it's important to note that the like-kind exchange rule only applies to real estate transactions starting from 2018, and it's unclear whether it applies to cryptocurrencies. It's always best to consult with a tax professional to understand the specific exemptions and rules that apply to your situation.
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• Nkuebe MolekoJan 08, 2022 · 4 years ago
  Absolutely! The IRS has specific rules and exemptions for long term capital gains tax on cryptocurrencies. One of the most important exemptions is the 0% tax rate for individuals in the lowest income tax bracket. This means that if your taxable income falls within this bracket, you won't owe any taxes on your long term capital gains from crypto. Additionally, there is a special rule called the 'like-kind exchange' that allows you to defer taxes on your crypto gains by reinvesting them into another cryptocurrency. However, it's important to consult with a tax professional to ensure you understand all the exemptions and rules that apply to your specific situation.
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• Juras JirasMay 27, 2021 · 4 years ago
  Yes, there are exemptions and special rules for long term capital gains tax on cryptocurrencies. For example, individuals in the lowest income tax bracket may be eligible for a 0% tax rate on their long term capital gains from crypto. This means that if your taxable income falls within this bracket, you won't owe any taxes on your crypto gains. Additionally, there is a special rule known as the 'like-kind exchange' that allows you to defer taxes on your crypto gains by reinvesting them into another cryptocurrency. However, it's important to note that the like-kind exchange rule only applies to real estate transactions starting from 2018, and it's unclear whether it applies to cryptocurrencies. It's always a good idea to consult with a tax professional to understand the specific exemptions and rules that apply to your situation.
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