Friday, November 26, 2021

What is a taxable event?

In looking toward the future where I can access some of my gains I’m curious as to what a taxable event in crypto is. This is specifically looking at exchanges in the UD.

If I transfer Bitcoin to Ethereum does that count as “selling Bitcoin” and thus I’m taxed 30% capital gains (if I’ve held less than a year)?

Similarly, if I transfer to a coin to USDC does that count as selling since it’s basically the US dollar?

Do I only get taxed for moving money off the exchange or if I keep it on the exchange does it count as holding an asset?

Is there a certain amount of value that I will have to take into account unrealized gains tax?

Tax season is still a few months away, but it’s be nice to know for decision making now. I plan to hold, but in the future it’s be nice to know.


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