What are the tax implications of investing in cryptocurrencies using cashapp?

1 answers

• Nikita GuptaOct 09, 2024 · 10 months ago
  Investing in cryptocurrencies using cashapp can have tax implications that you should be aware of. The IRS treats cryptocurrencies as property, which means that any gains or losses from buying, selling, or exchanging cryptocurrencies are subject to capital gains tax. This means that if you make a profit from selling your cryptocurrencies, you will need to report that profit on your tax return and pay taxes on it. The tax rate you will pay depends on how long you held the cryptocurrencies before selling them. If you held them for less than a year, the gains will be taxed as short-term capital gains, which are taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be taxed as long-term capital gains, which are taxed at a lower rate. It's important to keep track of your cryptocurrency transactions and consult with a tax professional to ensure you are meeting your tax obligations.
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