What are the tax implications for US citizens who own BTC?

1 answers

• Mar 18, 2022 · 3 years ago
  When it comes to US citizens who own Bitcoin (BTC), there are some tax implications to keep in mind. The IRS considers Bitcoin as property, so any gains or losses from selling or exchanging it are subject to capital gains tax. If you hold Bitcoin for less than a year before selling or exchanging it, the gains will be taxed as ordinary income. However, if you hold it for more than a year, the gains will be subject to long-term capital gains tax rates, which are generally lower. It's important to stay compliant with the IRS and accurately report your Bitcoin transactions on your tax return to avoid any potential issues.
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