MultiversX Tracker is Live!

What is the tax rate on Cryptocurrencies? (US)

Etherum Reddit

More / Etherum Reddit 87 Views

What is the tax rate on Cryptocurrencies? (US)

The tax rate on bitcoin varies from person to person. It is dependent on how long you held your bitcoin and what personal income tax bracket you fall into for any given year.

Disposing of bitcoin will trigger a capital gains tax event and be taxed as long-term or short-term capital gains. If you hold bitcoin/cryptocurrency for more than a year, your disposals will be subject to long-term capital gains tax rates, and if you hold it for less than a year, they will be subject to short-term capital gains tax.

Short term gains are taxed at the following rates:

https://preview.redd.it/0zb3xqkx33sa1.jpg?800&format=pjpg&auto=webp&s=247d8e5e6e33f26b4818dc7e70b26c24217adb60

Long term gains are taxed at the following:

https://preview.redd.it/hcpzuisy33sa1.jpg?800&format=pjpg&auto=webp&s=a2e714e46300798763a8915e373787c7f8ef03e4

If you have been dollar cost averaging into bitcoin, it can be helpful to use a crypto tax software tool to view the holding period of your full crypto portfolio to help identify which of your assets currently qualify for the more favorable long term rates.

Happy tax season to all those who celebrate.

submitted by /u/stratguy56
[link] [comments]

Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments