What are the differences between short-term and long-term capital gains for crypto taxes in 2024?

1 answers

• HASSAN RIZWANNov 09, 2022 · 3 years ago
  Short-term and long-term capital gains for crypto taxes in 2024 can have a significant impact on your tax liabilities. Short-term gains are profits made from selling cryptocurrencies held for less than a year, while long-term gains are derived from the sale of cryptocurrencies held for more than a year. Short-term gains are subject to ordinary income tax rates, which can be higher than long-term capital gains tax rates. On the other hand, long-term gains are taxed at lower rates, ranging from 0% to 20% based on your income level. To determine whether a gain is short-term or long-term, you need to consider the holding period of the cryptocurrency. It's important to consult with a tax professional or use tax software to accurately calculate your tax liabilities and take advantage of any potential tax benefits.
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