If Bitcoin Surges to End 2022, Will My Gains Be Taxed?
— Form 1099, Extreme volatility, Tempted, Purchased, Reach, Consult, Taxable investment accountscapital gains taxes apply, Loss, Property, Taxable investment account — 1 min read
Bitcoin is the top cryptocurrency by market capitalization -- roughly $378 billion as of this writing. The price of a token dropped below $18,000 in late June, and volatility has left investors struggling to predict which direction Bitcoin will go in next. Selling Bitcoin for more than you purchased it for in a taxable investment account can trigger capital gains taxes. Capital gains taxes don't apply to retirement accounts, but you'll have to report your gains to the IRS. If you only bought Bitcoin this year, you probably won't have to worry about capital gains tax rates if you hold on to your Bitcoin for longer than a full year before you sell it for a profit, but short-term rates range from 10% to 37% -- the same rates that apply to working a job. Source