What are the tax implications of buying and selling cryptocurrency in Michigan?

1 answers

• England FreedmanDec 17, 2022 · 3 years ago
  At BYDFi, we understand that the tax implications of buying and selling cryptocurrency in Michigan can be complex. The state treats cryptocurrency as property for tax purposes, which means that any gains or losses from the sale or exchange of cryptocurrency are subject to capital gains tax. The specific tax rate will depend on your individual tax bracket and how long you held the cryptocurrency before selling it. It's important to keep detailed records of your cryptocurrency transactions, including the date of acquisition, the purchase price, and the sale price, in order to accurately calculate your capital gains or losses. If you receive cryptocurrency as payment for goods or services, the fair market value of the cryptocurrency at the time of receipt will be considered taxable income. We recommend consulting with a tax professional who is knowledgeable about cryptocurrency taxation to ensure that you are in compliance with the tax laws in Michigan.
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