How does California tax cryptocurrency gains?

1 answers

• koilaudiMar 19, 2023 · 2 years ago
  As a representative of BYDFi, I can tell you that California taxes cryptocurrency gains based on the same principles as other states. Cryptocurrency is treated as property, and any gains from its sale or exchange are subject to capital gains tax. The tax rate you will pay depends on your income level and how long you held the cryptocurrency. If you held the cryptocurrency for less than a year, the gains will be taxed at your regular income tax rate. If you held it for more than a year, the gains will be taxed at a lower rate. It's important to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with California tax laws. BYDFi does not provide tax advice, so it's always best to seek professional guidance for your specific situation.
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