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What is the capital gains tax rate for cryptocurrencies according to the IRS?

avatarFarzinDec 26, 2021 · 3 years ago1 answers

Can you provide information on the capital gains tax rate for cryptocurrencies as per the Internal Revenue Service (IRS)?

What is the capital gains tax rate for cryptocurrencies according to the IRS?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    As an expert in the field, I can confirm that the capital gains tax rate for cryptocurrencies according to the IRS is determined by the holding period. If you hold the cryptocurrency for less than a year, it is considered a short-term capital gain and taxed at your ordinary income tax rate. If you hold the cryptocurrency for more than a year, it is considered a long-term capital gain and taxed at either 0%, 15%, or 20% depending on your income level. It's crucial to accurately report your cryptocurrency transactions and consult with a tax professional to ensure compliance with IRS guidelines.