Saim Akif

CPA, CFA, CAMS, Realtor

Cryptocurrency and Virtual Currency Accounting
Real Estate and Construction Accounting

Saim Akif, CPA, CFA, CAMS, Realtor

What are crypto long term capital gains?

Good morning Saim, can you please elaborate on crypto long term capital gain and its rates? How can I optimize my tax liability in terms of short term and long term holdings?

Crypto long term capital gains are tokens that are held in your portfolio for more than a year. After the 1 year window, as an investor you are eligible for preferential tax treatment via long term capital gains.

Cost basis and time are the key here. After that 1 year window, long term capital gains rates are 0%, 15%, and 20% depending on your income. NFTs are to be treated differently than other crypto since NFTs could be considered as collectibles and have a different capital gains tax rate.

Consult with a crypto CPA on what your tax liability looks like if you end up selling or exchanging your coins.

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