What are the tax implications of buying and selling bitcoin in the US?

1 answers

• Udhav NegiJun 17, 2021 · 4 years ago
  As an expert in the field, I can tell you that buying and selling bitcoin in the US can have tax implications. The IRS treats bitcoin as property, which means that any gains or losses from selling bitcoin are subject to capital gains tax. If you hold bitcoin for less than a year, the gains will be taxed at your ordinary income tax rate. However, if you hold bitcoin for more than a year, you may qualify for the lower long-term capital gains tax rates. It's important to keep track of your transactions and consult with a tax advisor to understand your specific tax obligations and ensure compliance with the IRS rules and regulations.
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