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Title: [Question] Are you supposed to pay taxes if you peel/redeem a physical coin? Post by: tinerd on February 19, 2021, 04:48:18 AM Asking for US residents.
If one keeps the value as BTC and does not cash out, does it count as "withdrawing" and are you suppose to still pay capital gains on it? If so, what happens if you do cash it out later? Title: Re: [Question] Are you supposed to pay taxes if you peel/redeem a physical coin? Post by: Zyro on February 19, 2021, 05:00:56 AM No. Selling or trading it for USD or another cyrpto currency would trigger a taxable event. IT would be crazy If moving coins from one address to another, or importing a private key into a wallet triggered a taxable event.
Title: Re: [Question] Are you supposed to pay taxes if you peel/redeem a physical coin? Post by: philipma1957 on February 19, 2021, 05:10:00 AM No. Selling or trading it for USD or another cyrpto currency would trigger a taxable event. IT would be crazy If moving coins from one address to another, or importing a private key into a wallet triggered a taxable event. moving coins from wallet a to wallet b is a reportable event. but no taxes are due. example 100 dollar coin when purchased from coinbase and sitting in coinbase. gets moved year later. to a private wallet. when it is worth 10000 years later you move back to coin base when it is worth 50000. you cash it out at 50,000 you need to pay tax on 49,900 cap gains. but you need to report the moves and paper trail ie. buy for 100 at coinbase move to wallet at 10000 move to coinbase at 50000 sell at 50000 so proper reporting shows all of above. which means record keeping. over many years. Title: Re: [Question] Are you supposed to pay taxes if you peel/redeem a physical coin? Post by: tinerd on February 19, 2021, 06:52:47 AM This is super helpful, thank you for the thorough explanation!
Title: Re: [Question] Are you supposed to pay taxes if you peel/redeem a physical coin? Post by: DaveF on February 19, 2021, 01:17:08 PM Keep in mind you also have to deal with the issue of what the BTC was worth & what value the coin is / was worth.
Gold / silver / etc. Do have value and if you peel the coin and sell it there might be value there too that you have to report. AND do not forget the value of any forks on it. Standard disclaimer: The above is not tax advice, I am not an accountant, talk to a qualified accountant about your taxes. -Dave |