How can I calculate the short term capital gain tax for my cryptocurrency investments?

1 answers

• Lob MandalMay 24, 2024 · a year ago
  Calculating the short term capital gain tax for your cryptocurrency investments is an important step in managing your finances. Here's a simple guide to help you out. First, gather all your transaction records, including the purchase price, selling price, and any fees or commissions. Next, calculate the capital gain for each transaction by subtracting the purchase price from the selling price. Once you have the capital gains for all your transactions, add them up to get the total capital gain. Then, determine your holding period for each transaction, which is the number of days between the purchase and sale. If the holding period is less than a year, it's considered short term. Finally, apply the appropriate tax rate to the total capital gain based on your income level. Remember to keep accurate records and consult with a tax professional for personalized advice and to ensure compliance with tax laws.
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