I understand that converting any crypto to a stablecoin is a taxable event. But if I bought Bitcoin through one exchange years ago and then moved it to another exchange and converted it to USDC, would I be taxed on the gains from the price of BTC from when I first bought it or from the price when I moved it to the new exchange?
Thanks for any help
Wednesday, November 15, 2023
Tax Question
An alternative to taking out bank or credit card loans to buy Bitcoin
I keep seeing people asking/talking about taking out bank or credit card loans to buy more Bitcoin before the halving, a great alternative is taking a loan out from your 401k if you have one. Most 401Ks allow you to borrow half of your balance up to $50k, this does not trigger a penalty, there's no credit check, it's an untaxable event, and best part is that the interest you pay on the loan goes back into your 401k as well. You can repay the loan over the course of 1-5 yrs and in a worst case scenario if you default on the loan it leave no negative marks on your credit score and you would simply have to pay the 10% penalty fee that would've incurred if you had cashed out early.
Just something to chew on.
An alternative to taking out bank loans to buy Bitcoin
I keep seeing people asking/talking about taking out bank or credit card loans to buy more Bitcoin before the halving, a great alternative is taking a loan out from your 401k if you have one. Most 401Ks allow you to borrow half of your balance up to $50k, this does not trigger a penalty, there's no credit check, it's an untaxable event, and best part is that the interest you pay on the loan goes back into your 401k as well. You can repay the loan over the course of 1-5 yrs and in a worst case scenario if you default on the loan it leave no negative marks on your credit score and you would simply have to pay the 10% penalty fee that would've incurred if you had cashed out early.
Just something to chew on.
Subscribe to:
Posts (Atom)