Ethereum
$4,121.24 7.80%
ETH · 2w

US Crypto Tax Refresher

I've seen this come up a bit with the upcoming release of RocketPool and wanted to throw in some general crypto guidance as far as taxes. Keep in mind, I am not a professional, but these are the guidelines I am operating off of. Also, I am US based. Your laws may be different. The following would typically generate a taxable event: * Selling cryptocurrency for fiat currency (i.e. USD, CAD, EUR, JPY, etc.) * This one is pretty straightforward. If you buy 100 dollars worth of ETH and sell for 150 dollars you will be liable for the taxes on the 50 dollar gain. On the flip side, if you are a paper hands or doing some tax loss harvesting you can sell for 50 dollars. This means a 50 dollar loss you can write off on your taxes as a loss. There is a limit to how much losses you can write off per year. Also, there are upcoming proposals in the US to get rid of the ability to easily harvest losses. * NOTE: If you sell and rebuy immediately, the lower price is considered your new buy price for tax purposes. So if you bought at 100, sold/rebought at 50, and then sold at 200...you'd be liable for taxes on the gains of 100 dollars if resold during the same tax year and 150 is sold during the following tax year (your liabilities would be -50 for year 1 and 150 for year 2). * Trading cryptocurrency for other cryptocurrency (e.g. BTC for ETH, [does **not** require cashing out to fiat to be taxable](https://help.cointracker.io/en/articles/1920649-what-if-i-only-traded-crypto-crypto-within-an-exchange-without-cashing-out-to-fiat)) * This is similar to selling. If you buy 100 dollars worth of ETH and later swap for 150 dollars worth of LINK, you are liable for taxes on the 50 dollar gain. Keep in mind, if you stake on a platform that trades you a token such as rETH for your ETH...this IS considered a swap and a taxable event. * Also, if you bought an NFT at 100 dollars worth of ETH and sold it for 150 dollars worth of ETH, you are liable for the taxes on the 50 dollar g...
Continue on self.ethtrader
Recent news