How do long-term vs short-term capital gains rates apply to digital currencies?

1 answers

• BrodaJan 06, 2024 · 2 years ago
  At BYDFi, we understand that navigating the world of capital gains rates can be confusing, especially when it comes to digital currencies. The long-term vs short-term capital gains rates apply to digital currencies in the same way as they do to other investments. If you hold a digital currency for more than a year before selling, you'll be subject to the long-term capital gains rate, which is often lower than the short-term rate. On the other hand, if you sell within a year, you'll be subject to the short-term rate, which is typically the same as your ordinary income tax rate. It's always a good idea to consult with a tax professional to ensure you're aware of the specific rates and regulations that apply to your situation.
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