TAXES ON CRYPTO GAINS! Staking/Farming/Lending
In this video, we’ll be discussing taxes on crypto gains from staking, farming, and lending.
When it comes to tax time, understanding crypto taxes can be a bit confusing. Fortunately, the US government has provided some guidance on the topic.
First and foremost, it’s important to note that crypto gains are generally taxed as capital gains. So, if you have an income from staking, farming, or lending crypto, it will be taxed as capital gains.
It’s also important to note that the tax rate for capital gains can vary depending on the amount of income you make. The tax rate for short-term capital gains is the same as your ordinary income tax rate, whereas the tax rate for long-term capital gains is generally lower than your ordinary income tax rate.
It’s also important to note that holding onto your crypto for more than a year will qualify it as a long-term capital gain, which will result in a lower tax rate.
Finally, it’s important to remember to report any crypto gains on your tax return. Failing to do so could result in hefty penalties.
In conclusion, understanding the tax implications of staking, farming, and lending crypto is important. Make sure to consult with a tax professional if you have any questions or concerns.