If possible, I expect low taxes, even I hope to remain tax-free. But, Around the world, tax authorities have tried to issue regulations on bitcoin. The US Internal Revenue Service (IRS) and colleagues from other countries are mostly on the same page when dealing with bitcoin care.

The IRS says that bitcoin must be treated as an intangible and non-currency asset or property because it is not issued by a country's central bank. The treatment of Bitcoin as an asset makes tax implications clear.

If bitcoin is held for a period of less than a year before selling or exchanging, short-term capital gains tax is applied, which is the same as the ordinary income tax rate for individuals. However, if bitcoin is held for more than one year, the long-term capital gains tax rate is applied.

In the US, the long-term capital gains tax rate is 0% for people in 10% -15% of the ordinary gross income tax rate, 15% for people in 25% -35% tax group, and 20% for those in 39.6 tax bracket %. Thus, individuals pay taxes at a rate lower than the usual income tax rate if they have held bitcoin for more than one year.

However, this also limits tax deductions on long-term capital losses that a person can claim. Capital losses are limited to the total capital gains made in the year plus up to $ 3000 of ordinary income.