Topic: Tax Question (Read 128 times)
It is really complicated to pay taxes on crypto. Lets say I buy bitcoin and use it to buy multiple coins, some go in profit and some loss and I sell them for bitcoin and keep buying and selling on bitcoin while bitcoin price keeps rising. Do we pay taxes on these or only when converting to fiat. IRS should make everything clear for the US residents.
I realize we are supposed to pay taxes on profits earned with crypto currency, but it seems that’s dependent on cashing in (transferring profits to bank account). What if I buy 1 bitcoin today and hold for 5 years...let’s say that coin is worth 50k in 5 years and things change so that a place like amazon accepts bitcoins. If I start buying goods with bitcoin at that time, but never deposit money to my bank account, am I still supposed to pay tax on the items I purchase? How is this tracked?
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