What is the 60/40 tax treatment for cryptocurrencies?

3 answers

• McQueen FigueroaDec 20, 2023 · 2 years ago
  Sure! The 60/40 tax treatment for cryptocurrencies refers to the way profits and losses from cryptocurrency trading are taxed. Under this treatment, 60% of the gains are taxed at the long-term capital gains rate, which is typically lower, and 40% of the gains are taxed at the short-term capital gains rate, which is usually higher. This treatment is based on the assumption that 60% of cryptocurrency trades are held for more than one year and qualify for long-term capital gains tax rates.
  491

  246
• Bentley GilliamJul 04, 2023 · 2 years ago
  The 60/40 tax treatment for cryptocurrencies is a way of categorizing gains and losses from cryptocurrency trading for tax purposes. It means that 60% of the gains are taxed at a lower rate, while 40% of the gains are taxed at a higher rate. This treatment is based on the assumption that a majority of cryptocurrency trades are held for more than one year, which qualifies them for long-term capital gains tax rates. It's important to note that tax laws may vary by jurisdiction, so it's always a good idea to consult with a tax professional for specific advice.
  563

  188
• Jesus Z.Nov 30, 2024 · 8 months ago
  Ah, the 60/40 tax treatment for cryptocurrencies! It's an interesting concept. Basically, it means that when you make profits from trading cryptocurrencies, 60% of those profits are taxed at a lower rate, while the remaining 40% are taxed at a higher rate. This treatment is based on the assumption that most cryptocurrency trades are held for more than one year, which qualifies them for long-term capital gains tax rates. So, if you're planning to get into crypto trading, it's worth understanding how this tax treatment works to ensure you're prepared come tax season!
  571

  143