3 ms·
Short-term CGT in the US is around the 40-50% mark, something like that. Our hero bought 8 BTC for $7,200, or so goes their story, then sold it for $120,000-wor
by tom_ 9y ago
Short-term CGT in the US is around the 40-50% mark, something like that. Our hero bought 8 BTC for $7,200, or so goes their story, then sold it for $120,000-worth of altcoins, making a taxable gain of $113,800. 45% of that taxable gain = ~$50,000.
- dustingetz 9y agoIt is taxed as regular income so 10-40%
- seanmcdirmid 9y agoShort-term CGT is basically your ordinary income tax rate. So if you are taxed around 50%, then you aren't in the USA since the top rate is 39.6%. Also, your ordinary income tax rate depends on your income, the rate for $120k is 28% (but that only applies to income after 90k, before that it is taxed at 25% or less). You would only be taxed at 39.6% for gains after $418k.
- votepaunchy 9y agoMost Americans are also paying state / local / city taxes so it is possible to pay a ~50% marginal rate.
- seanmcdirmid 9y agoSome are, sure, but that would be high bracket. Glad to live in Washington state, at least.