Taxes on your gains

1 answers
1 votes
Taxes on your gains
asked
Id like to invest, transfer some $ into crypto not so much to use it but to store some wealth over time more as a long term investment. Is there any taxes to be paid on a capital gain in Bitcoin ?

Answers

newest most voted

Hi Reaume,

Yes there are taxes, however, that entirely depends on the jurisdiction you belong to and how long you hold onto your cryptos. You can read about it here and also look into countries with tax/no-tax policies related to cryptos over here. You can learn more about taxation from experts in this video :). Capital gain taxes are only applicable once you actually liquidate an asset that has appreciated in value since you purchased it.

@Reaume Caron

I’d be careful. Here in US, I’ve heard talk of taxing crypto to crypto transfers, as well as crypto to USD transfers. At this time, I don’t believe the IRS has the capability to easily track, but an audit could be done to trace all individual transactions. Crypto to crypto transfer could be treated similar stock trade where you are taxed on the change in value of the stock you are “selling”. But it becomes more difficult because you can also “spend” crypto as it changes in value in your wallet. In theory, if you bought 1 bitcoin at $5000, and now it is worth $10,000, and you buy a plane ticket for 0.5 bitcoin, you could liable for capital gain taxes, in addition to sales taxes on your plane ticket. Worst case, the full $5000 for the plane ticket could be taxed.

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