We have the official list of Digital Commodities from the SEC🔥
APT, AVAX, BTC, BCH, ADA, LINK, DOGE, ETH, HBAR, LTC, DOT, SHIB, SOL, XLM, XTZ and XRP.✅
Here's how Commodities are taxed:
Commodities are generally taxed as capital assets, with futures contracts commonly utilizing a 60/40 rule (60% long-term, 40% short-term capital gains) regardless of holding period. Physical commodities (gold/silver) are often taxed as collectibles at a maximum 28% rate, while commodity ETFs/ETNs vary, ranging from ordinary income rates to special partnership tax rules.
Commodity ETFs and ETNs:
ETFs holding Futures: Often follow the 60/40 rule and report via Form K-1.
ETFs holding Physicals: Taxed at the 28% collectible rate for long-term gains, explains Fidelity.
ETNs: Usually taxed as debt instruments; short-term gains are ordinary income, and long-term gains are capital gains.
Important Considerations:
Mark-to-Market: Futures traders must report unrealized gains/losses at year-end.
Loss Treatment: Capital losses can generally offset ordinary income up to $3,000 per year, with excess losses carried forward.
Today the SEC released clarifying interpretation of federal securities law applying to "certain crypto assets and transactions".
“It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities. And it reflects the reality that investment contracts can come to an end.
This effort serves as an important bridge for entrepreneurs and investors as Congress works to advance bipartisan market structure legislation, which I look forward to implementing with Chairman Selig in the near future.” - Paul Atkins SEC Chairman