Sarah, a U.S. taxpayer, purchased 1 Bitcoin (BTC) on January 1, 2022, for $50,000. She then...

 

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Sarah, a U.S. taxpayer, purchased 1 Bitcoin (BTC) on January 1, 2022, for $50,000. She then sold 0.5 BTC on March 15, 2023, for $30,000 and the remaining 0.5 BTC on December 10, 2023, for $40,000. Sarah is Married Filing Jointly with an income of $554,000. Calculate Sarah's capital gains tax liability for the 2023 tax year, assuming she's subject to a long-term capital gains tax rate of 20%. Sarah, a U.S. taxpayer, purchased 1 Bitcoin (BTC) on January 1, 2022, for $50,000. She then sold 0.5 BTC on March 15, 2023, for $30,000 and the remaining 0.5 BTC on December 10, 2023, for $40,000. Sarah is Married Filing Jointly with an income of $554,000. Calculate Sarah's capital gains tax liability for the 2023 tax year, assuming she's subject to a long-term capital gains tax rate of 20%.

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To calculate Sarahs capital gains tax liability we need to determine the capital gains or losses for ... View the full answer