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In 2025, the United States continues to enforce capital gains tax on Bitcoin transactions. This tax applies when you sell Bitcoin for a profit, and the rate depends on how long you held the asset. Short-term gains, from assets held less than a year, are taxed as ordinary income, while long-term gains benefit from lower rates.
Investors must report these gains on their tax returns using IRS Form 8949 and Schedule D. Failure to comply can result in penalties. It is crucial to keep detailed records of all transactions, including purchase dates and amounts, to accurately calculate gains or losses.
Given the volatility of Bitcoin, consulting a tax professional is advisable to navigate the complexities and ensure compliance with evolving regulations in 2025. |
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