Upcoming News: Capital Gains Tax on Cryptocurrency Sales
When you sell cryptocurrency, you are subject to the federal capital gains tax.
This is the same tax you pay for the sale of stocks, bonds, or real estate. The IRS taxes cryptocurrency like property and investments, not as currency.
For the 2023 tax year, the capital gains tax rates are 0%, 15%, and 20%. Capital gains tax rates apply if you sell your cryptocurrency for a profit. Generally speaking, the most common crypto-related activities are subject to capital gains tax treatment.
Cryptocurrency is Classified as Property by the IRS. Capital gains tax events involving cryptocurrencies include:
- Selling cryptocurrency for a profit
- Exchanging one cryptocurrency for another
- Using cryptocurrency to pay for goods or services
Between 0% to 20% tax on long-term capital gains. NFTs deemed collectibles may be taxed at 28%. Watch how to do...
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