What are the tax implications of investing in cryptocurrencies through a self-directed IRA on eTrade?

1 answers

• t55 saSep 08, 2020 · 5 years ago
  Investing in cryptocurrencies through a self-directed IRA on eTrade can have tax implications that you need to be aware of. The IRS treats cryptocurrencies as property, so any gains or losses from selling or exchanging them are subject to taxation. If you hold the cryptocurrencies for less than a year, the gains will be taxed at your ordinary income tax rate. However, if you hold them for more than a year, the gains will be subject to long-term capital gains tax rates, which are usually lower. It's important to keep track of your transactions and consult with a tax professional to ensure you're following all the necessary tax regulations.
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