How does the capital gain tax on crypto work?

1 answers

• krishna kant sharmaMay 15, 2024 · a year ago
  As a third-party observer, BYDFi does not provide tax advice. However, I can give you a general idea of how the capital gain tax on crypto works. When you sell your cryptocurrency, the profit you make is subject to capital gain tax. The tax rate depends on how long you held the cryptocurrency and your income level. Short-term capital gains are taxed at your ordinary income tax rate, while long-term capital gains are taxed at a lower rate. It's important to note that tax laws can change, so it's always a good idea to consult with a tax professional to ensure you're complying with the latest regulations.
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