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16852155 No.16852155 [Reply] [Original]

Let’s see if I understand crypto taxes in the US.

Say I buy $1000 worth of USDC. I use this to buy a different coin. This event is taxable, but because USDC didn’t gain in value before buying the next coin, the tax amounts to $0.

The coin I bought appreciates to $1200 in value. I decide to sell into USDC. This event is taxable, and I get charged short term capital gains on the $200 worth of profit.

I then convert the USDC into USD. This too is taxable, but again USDC did not change in value relative to the dollar, so taxes again amount to $0.

At the moment of a trade, we are only taxed capital gains on the increase in the value of a coin (if any) relative to the dollar. If there was no gain, there is effectively no tax. Do I have this correct?

>> No.16852176
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16852176

>>16852155
Can't help ya. I'm a Europoor.

>> No.16852185

Mexican gov can bearly understand stock taxes, im good

>> No.16852203

>>16852155
just live in the Netherlands and pay wealth tax once a year on whatever you own at that specific moment and do with the coins whatever you want the rest of the year,

>> No.16852206

>>16852155
You may have a tax free allowance, at least in europoor we do. We can basically fuck around up to the value of £12,000 ($14,000). As long as we do not earn more than £12k a year via crypto/stonks then we do not pay anything.

Only downside is that the exchanges realise this so charge higher amounts for europoors