It depends on whether the gain or loss is considered short term or long term.
If the asset is held for less than one year, it is considered short-term and will be taxed at your marginal income tax rate ranging from 10% to 39.6% for Federal tax purposes.
If the asset is held for one year or more, it is considered long-term and will be taxed between 0% and 23.8% for Federal tax purposes.
Please note that this does not include state taxes which vary from state to state.
The variables to consider when answering this question are:
- How long you held the virtual currency.
- Your standard income tax rate.
A virtual currency held for more than 365 days is to be taxed at the Long Term capital gains rate. Any virtual currency sold prior to this mark is taxed at the short-term capital gains rate.
Total your gains and losses from Virtual Currency transactions for the year in USD. If this number is positive, you have capital gains which are taxable. A negative number is a loss, which while nontaxable is nondeductible.”