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Aren't taxes only applicable to the profits? I assume the only issue with taxes is it'd be a little more paperwork to document all the trades done with the bot

• snark42 9y ago
  > Aren't taxes only applicable to the profits? If you hold for less than a year it's income, if you hold for more than a year it's capital gains. So buy and hold would possibly be advantageous in the US at least (35% vs 15% tax rates.)
  • AgentME 9y ago
    >If you hold for less than a year it's income But it's the profits specifically that are taxed as income, not the whole sale value, right? If I buy and sell one Bitcoin a hundred times in a day and make $1 of profit in total, is the tax is a percentage of $1 or a percentage of 100 times the bitcoin price?
    • colonelxc 9y ago
      Yes, just the amount gained. You also can write off losses against any other incomes you have.