How does cryptocurrency affect my taxes?

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As cryptocurrency gains popularity with people looking to invest, some may be asking: How will it affect my taxes?

Cryptocurrency, like dogecoin and bitcoin, would be taxed like stock market investments, meaning you are taxed based on the gain from your investment.

What you trade, sell or cash out on is what you pay taxes on.

North Dakota Tax Commissioner Ryan Rauschenberger says if you lose money in the market you can balance those losses with gains.

“They might day trade stocks, they might buy cryptocurrency. So if you have gains from selling stock, if you lose money on cryptocurrency you can offset those gains you have made elsewhere that you would tax on. So those cryptocurrency losses can be used to offset gains,” explained Rauschenberger.

Rauschenberger adds the typical taxes on stocks is 15 percent, plus whatever the state’s tax rate is that you live in on top of that.

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