Recently I have started work on an algorithm for the crypto bot. Due to the high volatility in crypto, I assume it will execute several deals per a single day (obviously some with profit and other will loss). As part of the flow, I am calculating the exchange fee to estimate possible profit and make a desition, but I did not think about taxes. I found this article which says:
#2. Tax events: An increase in value is not taxable. However, a tax event that results in a due and payable tax burden does not only occur, when the digital assets are sold for fiat money (Baht, US$, etc.) but also
if cryptocurrencies are used to buy goods and services, or
if digital assets are exchanged against other coins and tokens.
The rearrangement and shifting of a cryptocurrency wallet can, therefore, result in a taxable event, even if the digital wealth remains on the same platform.
and now I have a concern if my bot will get any profit at all :D
Based on the statement above does it mean that for any operation occurred at the exchange I have to pay the taxes? What if at the end of the day I will lose all available balance, will I still own the taxes for the previous profitable trades?
Thank you.
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