What are the tax implications of selling cryptocurrency in California in 2021?

2 answers

• Chambers TravisAug 26, 2023 · 2 years ago
  Selling cryptocurrency in California in 2021 has tax implications that you should be aware of. The state considers cryptocurrency as property, not as a form of currency, for tax purposes. This means that when you sell cryptocurrency, you may be subject to capital gains tax. The amount of tax you owe will depend on the difference between the purchase price and the sale price of the cryptocurrency. If you held the cryptocurrency for more than a year before selling, you may qualify for long-term capital gains tax rates, which are generally lower than short-term rates. It's important to consult with a tax professional who is knowledgeable about cryptocurrency taxation in California to ensure compliance with the state's tax laws and to accurately calculate your tax obligations.
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• scaredcatMar 06, 2023 · 2 years ago
  Selling cryptocurrency in California in 2021 can have tax implications that you need to consider. California treats cryptocurrency as property, not as currency, for tax purposes. This means that when you sell cryptocurrency, you may be subject to capital gains tax. The tax amount will depend on the difference between the purchase price and the sale price of the cryptocurrency. If you held the cryptocurrency for more than a year before selling, you may qualify for long-term capital gains tax rates, which are generally lower. It's recommended to consult with a tax professional who is familiar with cryptocurrency taxation in California to ensure compliance and accurate reporting of your cryptocurrency sales.
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