What are the tax implications of trading cryptocurrencies for Lawrence Hardge?

2 answers

• Dec 25, 2021 · 3 years ago
  Trading cryptocurrencies can have tax implications for Lawrence Hardge. According to the IRS, cryptocurrencies are treated as property, so any gains or losses from trading them are subject to capital gains tax. Lawrence should keep records of the cost basis and fair market value of each cryptocurrency transaction to accurately report the capital gains or losses. If Lawrence sells cryptocurrencies within a year of acquiring them, any profits will be taxed as short-term capital gains, which are typically taxed at higher rates. It's advisable for Lawrence to consult a tax professional to ensure compliance with tax regulations and optimize tax planning.
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• Dec 25, 2021 · 3 years ago
  As a representative of BYDFi, I can tell you that trading cryptocurrencies can have tax implications for Lawrence Hardge. The IRS treats cryptocurrencies as property, so any gains or losses from trading them are subject to capital gains tax. It's crucial for Lawrence to keep track of the cost basis and fair market value of each cryptocurrency transaction to accurately report the capital gains or losses. If Lawrence sells cryptocurrencies within a year of acquiring them, any profits will be taxed as short-term capital gains, which are typically taxed at higher rates. Consulting a tax professional is recommended to ensure compliance with tax laws and maximize tax planning opportunities.
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