Cryptocurrency Q&A
How much can you make on the crypto without paying taxes?
How much can you make on the crypto without paying taxes?
CryptoEnthusiast
Sat Oct 05 2024
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6 answers
1300
Excuse me, but I'm curious about the financial implications of cryptocurrency investments. Specifically, I'm wondering if there's a way to profit from trading or mining cryptocurrencies without incurring any tax liabilities. Could you elaborate on the potential tax implications of cryptocurrency transactions and any strategies or loopholes that might allow investors to maximize their gains while minimizing their tax burden? I understand that the tax laws vary by jurisdiction, but I'm looking for a general understanding of the topic.
6 answers
Caterina
Mon Oct 07 2024
For married couples filing jointly, the threshold for 0% taxation is doubled to $89,250. This allows couples to realize up to $89,250 in long-term capital gains on crypto sales without owing any taxes.
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GinsengBoostPower
Mon Oct 07 2024
Once the thresholds for 0% taxation are exceeded, the tax rate on long-term capital gains increases. For single filers, the next tax bracket is 15%, which applies to gains between $44,626 and $492,300. For married couples filing jointly, this bracket applies to gains between $89,251 and $553,850.
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Martino
Mon Oct 07 2024
When selling cryptocurrency in 2023, individuals need to be aware of the potential long-term capital gains taxes that will be due in April 2024. These taxes are determined based on the holding period of the crypto assets and the taxpayer's filing status.
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Michele
Mon Oct 07 2024
For gains exceeding the upper limits of the 15% bracket, the tax rate on long-term capital gains increases to 20%. This applies to single filers with gains of $492,301 or more and married couples filing jointly with gains of $553,851 or more.
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CryptoWizard
Mon Oct 07 2024
For single filers, the tax rate on long-term capital gains starts at 0% for gains up to $44,625. This means that if a single individual sells crypto and realizes gains within this range, they will not owe any taxes on those gains.
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