What are the tax implications for capital gains on cryptocurrency in California in 2022?

1 answers

• Rios StorgaardNov 01, 2023 · 2 years ago
  At BYDFi, we understand the importance of staying informed about the tax implications for capital gains on cryptocurrency in California in 2022. Cryptocurrency is treated as property by the IRS, which means that any gains from selling or exchanging cryptocurrency are subject to capital gains tax. In California, the tax rates for capital gains are the same as the federal rates. If you hold your cryptocurrency for less than a year before selling, the gains will be considered short-term and taxed at your ordinary income tax rate. If you hold it for more than a year, the gains will be considered long-term and taxed at the applicable long-term capital gains tax rate. It's crucial to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with the tax regulations in California.
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