Cryptocurrency Q&A
What happens if I sell my Bitcoin on Cash App?
What happens if I sell my Bitcoin on Cash App?
Eleonora
Fri Jun 07 2024
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6 answers
1299
Could you please elaborate on what would occur if I were to sell my Bitcoin using the Cash App? I'm curious about the process, the fees involved, and any potential risks or considerations I should be aware of. Would the proceeds be transferred directly to my bank account? Is there a waiting period involved? And what happens to the Bitcoin after it's been sold? Thank you for your assistance in clarifying this matter.
6 answers
EclipseRider
Sun Jun 09 2024
However, it's important to note that Cash App does not report a cost basis for your bitcoin sales to the IRS. The cost basis refers to the original value of the asset when it was acquired, which is crucial for calculating capital gains or losses.
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CryptoTitan
Sun Jun 09 2024
Selling bitcoin on Cash App involves certain tax obligations that users need to be aware of. Once a sale is completed, Cash App takes responsibility for providing necessary tax-related forms to its users.
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CoinPrince
Sun Jun 09 2024
IRS Form 1099-B is a crucial document that Cash App issues based on the IRS Form W-9 information provided by the user within the app. This form is used to report the proceeds from the sale of securities, including bitcoin.
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Stefano
Sat Jun 08 2024
As a result, users selling bitcoin on Cash App may owe taxes relating to such sale(s). It's the responsibility of the individual to keep track of their cost basis and calculate any taxable gains or losses accurately.
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Carlo
Sat Jun 08 2024
Failure to properly report and pay taxes on bitcoin sales can lead to serious legal consequences. Therefore, it's advisable to consult a tax professional or accountant to ensure compliance with all applicable tax regulations.
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