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How does capital gains tax work with this? For example you've been sitting on a pile of bitcoin with massive gains and spend it straight out of the account.
by ccjnsn 7y ago
How does capital gains tax work with this?
For example you've been sitting on a pile of bitcoin with massive gains and spend it straight out of the account.
- TuringNYC 7y agoIt would likely count as a sale and incur a capital gains tax. You'd spend $5 for that pizza and then another $2.50 on capital gains tax. Probably some more on eating the bid-ask spread.
- tim333 7y agoIt depends on the regulations where you are and the tax situation you are in. In the UK the first £12k gains are free. The US is kind of complicated with different rates for short term and long term gains. I declared UK crypto gains recently. It can get complicated if you try to follow all the instructions properly.