How does the short term and long term capital gains tax apply to cryptocurrency trading?

1 answers

• Nikhil BhatApr 24, 2024 · a year ago
  At BYDFi, we understand the importance of knowing how the short term and long term capital gains tax applies to cryptocurrency trading. Short term gains refer to profits made from selling cryptocurrencies that were held for less than a year, while long term gains refer to profits made from selling cryptocurrencies that were held for more than a year. The tax rates for short term gains are typically higher than those for long term gains. Short term gains are taxed at the individual's ordinary income tax rate, which can range from 10% to 37% depending on their income bracket. On the other hand, long term gains are subject to lower tax rates, which can provide a tax advantage for long term investors. It's important to consult with a tax professional or accountant to understand the specific tax rates and regulations in your country or jurisdiction.
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