What are the tax implications of the 60/40 tax rule for individuals trading cryptocurrencies?

1 answers

• LelouchDec 06, 2020 · 5 years ago
  The 60/40 tax rule is an important consideration for individuals trading cryptocurrencies. Under this rule, 60% of the gains from cryptocurrency trading are taxed at the long-term capital gains rate, while the remaining 40% are taxed at the short-term capital gains rate. This means that if you hold a cryptocurrency for more than one year before selling, you'll be subject to the lower long-term capital gains rate. However, if you sell a cryptocurrency within one year of acquiring it, you'll be subject to the higher short-term capital gains rate. It's important to keep track of your trades and consult with a tax professional to ensure compliance with the 60/40 tax rule. Please note that this information is for educational purposes only and should not be considered as tax advice. Consult with a qualified tax professional for personalized advice based on your specific situation.
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