What are the tax implications of earning profits from bitcoin?

1 answers

• Jan 05, 2022 · 3 years ago
  When it comes to earning profits from bitcoin, it's important to understand the tax implications. In most countries, including the United States, bitcoin is treated as property for tax purposes. This means that any gains made from selling or trading bitcoin are subject to capital gains tax. The tax rate depends on how long you held the bitcoin before selling it. If you held it for less than a year, it's considered a short-term capital gain and taxed at your ordinary income tax rate. If you held it for more than a year, it's considered a long-term capital gain and taxed at a lower rate. At BYDFi, we recommend consulting with a tax professional to ensure you are compliant with your tax obligations and to maximize any potential deductions or credits you may be eligible for.
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