What is Florida's New Cryptocurrency Law?

Florida’s Governor Ron DeSantis signed new cryptocurrency legislation on May 12, 2022. The new law provides a legal definition of what virtual currency is, amends Florida’s financial regulations related to money service businesses (MSBs), while ultimately reducing restrictions on Florida’s crypto industry.

How much tax do you owe on cryptocurrency?

Calculating how much cryptocurrency tax you owe in the U.S. is based on how long you’ve held the assets prior to disposing of them, as well as which income tax bracket you fall under. Short-term capital gains: Profits from a crypto asset held less than a year are taxed at the same rate as whichever income tax bracket you’re in.

Are virtual currency and cryptocurrency taxable?

The majority of states have not yet issued guidance on the tax treatment of virtual currency or cryptocurrency. A major consideration from a state tax perspective is whether or not the purchase of virtual currency or cryptocurrency is a taxable sale for sales and use tax purposes.

What are some capital gains tax events involving cryptocurrencies?

Capital gains tax events involving cryptocurrencies include: Selling cryptocurrency for fiat (U.S. dollar, Japanese yen, etc.). Sending cryptocurrency as a gift (anything over $15,000 for the 2021 tax year). Purchasing goods and services with cryptocurrency, even small purchases like buying a coffee.