How does cryptocurrency taxation work if you hold onto your coins without selling?

3 answers

• Dec 16, 2021 · 3 years ago
  When you hold onto your coins without selling them, you may still be subject to cryptocurrency taxation. In many countries, including the United States, the act of holding onto cryptocurrencies is considered an investment, and any increase in value is subject to capital gains tax when you eventually sell. It's important to keep track of the original purchase price and the current market value of your coins to accurately calculate your tax liability. Consult with a tax professional to ensure you comply with the specific tax laws in your jurisdiction.
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• Dec 16, 2021 · 3 years ago
  If you hold onto your coins without selling, you may not have any immediate tax obligations. However, when you do decide to sell or convert your cryptocurrencies into fiat currency, you will likely be subject to capital gains tax. The tax rate will depend on various factors, such as the duration you held the coins and your income bracket. It's important to consult with a tax advisor or accountant to understand the specific tax implications in your country or region.
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• Dec 16, 2021 · 3 years ago
  When you hold onto your coins without selling, you are essentially deferring your tax liability until you decide to sell. This means that you won't have to pay taxes on any potential gains until you realize them. However, it's important to note that tax laws can vary significantly between jurisdictions, and it's always a good idea to consult with a tax professional to ensure compliance with the specific regulations in your country. Additionally, keeping detailed records of your transactions and holdings can help you accurately calculate your tax liability when the time comes to sell.
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