The price you sell for, less what you bought it for (or exchanged for a different crypto, since that’s still a sale) is your income from trading the crypto. That income combined with all other income you have for a calendar year is taxed in its corresponding tax brackets.
If it’s just investments then it’s either short term (if you held the cypro less than 1 year before selling) or long term capital gains (if you held for 1 year or more before selling). Short term capital gains are taxed at ordinary income tax rates and brackets. There’s 0%, 15% and 20% tax brackets for long term capital gains.
If it’s a trade or business it goes on schedule C. And is subject to self employment taxes on top of income taxes. But you get to deduct corresponding expenses that goes into trading as your business.
I would recommend crypto trading either for investments or for a trade or business personally though.
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The price you sell for, less what you bought it for (or exchanged for a different crypto, since that’s still a sale) is your income from trading the crypto. That income combined with all other income you have for a calendar year is taxed in its corresponding tax brackets.
If it’s just investments then it’s either short term (if you held the cypro less than 1 year before selling) or long term capital gains (if you held for 1 year or more before selling). Short term capital gains are taxed at ordinary income tax rates and brackets. There’s 0%, 15% and 20% tax brackets for long term capital gains.
If it’s a trade or business it goes on schedule C. And is subject to self employment taxes on top of income taxes. But you get to deduct corresponding expenses that goes into trading as your business.
I would recommend crypto trading either for investments or for a trade or business personally though.