How do the tax rates for capital gains on digital assets differ from traditional investments in 2018?

1 answers

• Jan 01, 2022 · 3 years ago
  When it comes to tax rates for capital gains on digital assets versus traditional investments in 2018, there are some key differences. Digital assets, such as cryptocurrencies, are classified as property by the IRS. This means that when you sell a digital asset for a profit, it is considered a capital gain. The tax rate for long-term capital gains on digital assets held for more than a year is based on your income tax bracket, ranging from 0% to 20%. However, short-term capital gains on digital assets held for less than a year are taxed at your ordinary income tax rate. So, if you're in a higher tax bracket, you may end up paying a higher tax rate on your digital asset gains compared to traditional investments. It's important to consult with a tax professional to ensure you're accurately reporting and paying the correct amount of taxes on your digital asset gains.
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