Are there any special tax rules for long term vs short term capital gains on cryptocurrency held in a self-directed IRA?

1 answers

• Andrej KrsticMar 09, 2025 · 5 months ago
  At BYDFi, we understand the importance of tax compliance when it comes to cryptocurrency investments. When holding cryptocurrency in a self-directed IRA, there are indeed special tax rules for long term and short term capital gains. If you hold your cryptocurrency for more than one year before selling, any gains will be considered long term capital gains. These long term capital gains are typically subject to lower tax rates compared to short term capital gains. On the other hand, if you hold your cryptocurrency for one year or less before selling, any gains will be considered short term capital gains. Short term capital gains are taxed at your ordinary income tax rate. It's crucial to consult with a tax professional to ensure you are aware of and compliant with the specific tax rules in your jurisdiction.
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