What is the tax treatment for unrealized gains on cryptocurrencies?

3 answers

• Nov 26, 2021 · 3 years ago
  Unrealized gains on cryptocurrencies are not subject to immediate taxation. The tax liability arises when the gains are realized by selling or exchanging the cryptocurrencies. Until then, the gains are considered unrealized and are not taxable. However, it's important to note that the tax treatment of cryptocurrencies can vary from country to country, so it's advisable to consult with a tax professional or accountant to understand the specific regulations in your jurisdiction.
  481241
• Nov 26, 2021 · 3 years ago
  When it comes to unrealized gains on cryptocurrencies, the general rule is that you don't owe taxes until you sell or exchange your cryptocurrencies. This means that if you're holding onto your cryptocurrencies and haven't sold or exchanged them, you won't have to pay taxes on any gains you've made. However, it's always a good idea to keep track of your transactions and consult with a tax professional to ensure compliance with the tax laws in your country.
  460154
• Nov 26, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, the tax treatment for unrealized gains on cryptocurrencies is based on the principle of 'no taxation without realization.' This means that you're not required to pay taxes on unrealized gains until you sell or exchange your cryptocurrencies. However, it's important to note that tax laws can vary between jurisdictions, so it's always a good idea to consult with a tax professional to understand the specific regulations that apply to you.
  494124