Crypto tax is complicated and I have a question about taxable event when borrowing fiat against your bitcoin.
Say you have bitcoin. In the US, you have to pay tax when you sell bitcoin. Selling BTC at exchange to buy a house, you will be due for capital gains tax.
Suppose you are buying a house and you take loan with your bitcoin as collateral. Now you have loan and negative balance on your credit. You pay off your loan by selling small amounts of BTC over many years. In this case, how do you get taxed differently than when you sell at exchange to pay for your house?
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