BonsaiLife
Fri Jun 21 2024
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5 answers
1545
Do you pay taxes on crypto if you never sell?
When it comes to cryptocurrencies, a common question arises among investors: Do you pay taxes on crypto if you never sell? The answer, unfortunately, is not a simple yes or no. While there's no direct tax levied on simply holding cryptocurrency, the tax implications can arise when you make transactions involving crypto. For instance, if you earn crypto as a reward for mining or staking, or if you trade crypto for goods and services, these activities may be subject to taxation. Furthermore, if you eventually decide to sell your crypto, you may need to pay capital gains tax on the profits made from the sale. Therefore, it's essential to consult a tax professional to understand your specific tax obligations related to cryptocurrency holdings and transactions.
