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Income from investment

Hi how do we calcuate taxes on the investment income from Crypto?

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1 Reply
JBedford
Expert Alumni

Income from investment

Hi, @Makiko ! The short answer is, "Just like they were stocks or mutual funds." Income from the sale, exchange, or use of crypto is taxed as either a short- or long-term capital gain, depending upon whether it was held for more than a year, or one year or less. 

 

I'm assuming that's what you mean by "investment income", but do be aware that if you received any other crypto-related income (e.g. airdrops, incentives, hard forks, etc.), those are taxed as ordinary income (which is generally a higher rate). 

 

Hope this helps! 

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