What kind of transactions create taxable capital gains or losses under US law?
The sale or exchange of an asset (e.g. stocks, metals, crypto, etc.) on the Uphold platform results in a capital gain or capital loss that is taxable for US income tax purposes. A capital gain will result when the asset is sold for more than it cost (the tax basis). A capital loss will result when the asset is sold for less than the basis. In order to accurately report capital gains and losses, taxpayers must classify whether they’re short-term or long-term.
Generally, if an asset is held longer than one year before it’s sold or exchanged, then it’s a long-term capital gain or loss. If the capital asset is held less than a year it is a short-term gain or loss.