What are the capital gains tax implications for traditional IRAs in the cryptocurrency industry?

1 answers

• Ājay ĀthwalJan 03, 2023 · 3 years ago
  At BYDFi, we understand that traditional IRAs and cryptocurrencies can be a tricky combination when it comes to capital gains tax. If you sell your cryptocurrencies held in a traditional IRA at a profit, you will be subject to capital gains tax. The tax rate will depend on how long you held the cryptocurrencies before selling them. Short-term gains, for cryptocurrencies held for less than a year, are taxed at your ordinary income tax rate. Long-term gains, for cryptocurrencies held for more than a year, are taxed at a lower rate, typically 15% or 20% depending on your income level. It's important to consult with a tax professional to ensure compliance with the tax laws and to maximize your tax savings.
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