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Cryptoasset derivatives (CFDs, Futures and Margin Trading)
Individual traders will pay capital gains tax on any margin trades or other CFDs. When you open a new position, you pay no tax, however, when this position closes you realise a capital gain or loss and a taxable event occurs. The same short-term and long-term Capital Gains Tax rates apply to these transactions.
When it comes to crypto futures - if you're trading regulated crypto futures, you can apply the 60/40 rule to get a more favourable tax treatment. This is because of the IRS 60/40 rule. This rule allows investors to treat 60% of their gains as long-term gains and 40% as short term gains regardless of how long a position is kept open. The vast majority of crypto futures are (as-yet) unregulated and as such these rules cannot be applied.
Last modified 10mo ago