USA Taxes: What is your tax bracket for selling bitcoin in 2024?

[headingnorth]

Please refer to the tax chart below from Google Photos:

https://photos.app.goo.gl/HyuJY1he1HNM4wDL7


 What is your tax bracket for selling bitcoin in 2024 as a US resident? 

1. Assuming bitcoin was held for more than a year.
2. You are single and not working in 2024, and your only source of income this year is from your sale of bitcoin.

So lets say you sold $100K of long-term bitcoin in 2024 and your profit on this sale was $45,000.
According to the chart linked above your taxes for 2024 should be zero, correct?

Since your profit was less than the cutoff amount for the next higher bracket at $47,025?

[zasad@]

Please refer to the tax chart below from Google Photos:

https://photos.app.goo.gl/HyuJY1he1HNM4wDL7


 What is your tax bracket for selling bitcoin in 2024 as a US resident? 

1. Assuming bitcoin was held for more than a year.
2. You are single and not working in 2024, and your only source of income this year is from your sale of bitcoin.

So lets say you sold $100K of long-term bitcoin in 2024 and your profit on this sale was $45,000.
According to the chart linked above your taxes for 2024 should be zero, correct?

Since your profit was less than the cutoff amount for the next higher bracket at $47,025?

I wouldn't advise you to draw conclusions from analyzing just one table. Even if you have $0 tax, you are required to file a tax return and a tax advisor should check all the nuances.

[headingnorth]

Please refer to the tax chart below from Google Photos:

https://photos.app.goo.gl/HyuJY1he1HNM4wDL7


 What is your tax bracket for selling bitcoin in 2024 as a US resident? 

1. Assuming bitcoin was held for more than a year.
2. You are single and not working in 2024, and your only source of income this year is from your sale of bitcoin.

So lets say you sold $100K of long-term bitcoin in 2024 and your profit on this sale was $45,000.
According to the chart linked above your taxes for 2024 should be zero, correct?

Since your profit was less than the cutoff amount for the next higher bracket at $47,025?

I wouldn't advise you to draw conclusions from analyzing just one table. Even if you have $0 tax, you are required to file a tax return and a tax advisor should check all the nuances.

Just one table? Are you stupid? Those are official numbers from the IRS.

[DaveF]

It's INCOME not just long term capital gain income.
If you are making $50000 a year (taxable) at your job you are going to owe at least 15% of any profit you make selling anything with long term capital gains.

Take a look here: https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
for a full explanation. And a calculator for 2023 so you can get a general idea.

-Dave

[headingnorth]

It's INCOME not just long term capital gain income.
If you are making $50000 a year (taxable) at your job you are going to owe at least 15% of any profit you make selling anything with long term capital gains.

Take a look here: https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
for a full explanation. And a calculator for 2023 so you can get a general idea.

-Dave

I just said in my OP that there was NO INCOME in 2024 other than potential capital gains from sale of bitcoin.

What part of that do you not understand? Are you not literate? Christ learn some god damn reading comprehension.

[Solosanz]

Yeah you're paying zero tax, but you should report it to tax authority, don't think just because you're paying zero tax, you're allowed to not report your capital gains.

In my country I need to pay value added tax, so no matter what how much I sell it, even it's just $1, I need to pay some % from $1. The value added tax for using international exchange is higher than using local exchange.

[yhiaali3]

Just one table? Are you stupid? Those are official numbers from the IRS.

I just said in my OP that there was NO INCOME in 2024 other than potential capital gains from sale of bitcoin.
What part of that do you not understand? Are you not literate? Christ learn some god damn reading comprehension.

What are these bad words you use??!! You have to learn some respect for others even if they disagree with you or don't understand what you're saying as you think.

You have to show respect to members who are older than you and have a higher rank in the forum like @zasad and @DaveF who are known to be high quality posters in the forum, if you don't stop I will report you to the moderator.

[DaveF]

Just one table? Are you stupid? Those are official numbers from the IRS.

I just said in my OP that there was NO INCOME in 2024 other than potential capital gains from sale of bitcoin.
What part of that do you not understand? Are you not literate? Christ learn some god damn reading comprehension.

What are these bad words you use??!! You have to learn some respect for others even if they disagree with you or don't understand what you're saying as you think.

You have to show respect to members who are older than you and have a higher rank in the forum like @zasad and @DaveF who are known to be high quality posters in the forum, if you don't stop I will report you to the moderator.

No, he does not have to show respect, it's just called manners.

He asked question "A" I answered in a way that could be called "A¹" It was more or less it was a yes with a but. I just did not spell it out that way.

Not worth it to me to get upset over. It's the internet, people can act however they want and others can choose if they want to continue to interact with them or ignore them.


-Dave

[Davidvictorson]

Not worth it to me to get upset over. It's the internet, people can act however they want and others can choose if they want to continue to interact with them or ignore them.

First off, you handled this well and I commend you for that. Second, I agree with you that it definitely not worth it to be upset over some random stranger on the internet. I have encountered one like that on the forum who kind of made it a personal attack. What I ended up doing which I totally recommend for you to do is to use the "ignore" button if they cause you too much trouble.

[headingnorth]

Yeah you're paying zero tax, but you should report it to tax authority, don't think just because you're paying zero tax, you're allowed to not report your capital gains.

In my country I need to pay value added tax, so no matter what how much I sell it, even it's just $1, I need to pay some % from $1. The value added tax for using international exchange is higher than using local exchange.

I didn't ask if the income should be reported or not. Of course it should be reported. I asked what the tax bracket should be.

Again, learn some reading comprehension.

[headingnorth]

Just one table? Are you stupid? Those are official numbers from the IRS.

I just said in my OP that there was NO INCOME in 2024 other than potential capital gains from sale of bitcoin.
What part of that do you not understand? Are you not literate? Christ learn some god damn reading comprehension.

What are these bad words you use??!! You have to learn some respect for others even if they disagree with you or don't understand what you're saying as you think.

You have to show respect to members who are older than you and have a higher rank in the forum like @zasad and @DaveF who are known to be high quality posters in the forum, if you don't stop I will report you to the moderator.

No, he does not have to show respect, it's just called manners.

He asked question "A" I answered in a way that could be called "A¹" It was more or less it was a yes with a but. I just did not spell it out that way.

Not worth it to me to get upset over. It's the internet, people can act however they want and others can choose if they want to continue to interact with them or ignore them.


-Dave

You should learn respect by reading the question carefully before you open your mouth to prove that you don't know what you are talking about.

I don't give a shit if you are long time member when you have no clue what you are talking about in regards to what I asked and can't even grasp the basic facts of the original question. What are you 12 years old?

[yhiaali3]

No, he does not have to show respect, it's just called manners.

He asked question "A" I answered in a way that could be called "A¹" It was more or less it was a yes with a but. I just did not spell it out that way.

Not worth it to me to get upset over. It's the internet, people can act however they want and others can choose if they want to continue to interact with them or ignore them.

Thank you for your good behavior and rational response

Yes, it is not worth it because we do not want to turn the forum into a place for mutual attacks instead of being an open forum for dialogue and exchange of opinions. I have seen many topics that have turned into an arena for exchanging offensive words away from discussing the main topic.

So, well done

[zasad@]

Please refer to the tax chart below from Google Photos:

https://photos.app.goo.gl/HyuJY1he1HNM4wDL7


 What is your tax bracket for selling bitcoin in 2024 as a US resident?  

1. Assuming bitcoin was held for more than a year.
2. You are single and not working in 2024, and your only source of income this year is from your sale of bitcoin.

So lets say you sold $100K of long-term bitcoin in 2024 and your profit on this sale was $45,000.
According to the chart linked above your taxes for 2024 should be zero, correct?

Since your profit was less than the cutoff amount for the next higher bracket at $47,025?

I wouldn't advise you to draw conclusions from analyzing just one table. Even if you have $0 tax, you are required to file a tax return and a tax advisor should check all the nuances.

Just one table? Are you stupid? Those are official numbers from the IRS.

Obviously, you're the only one who's stupid here!
I'll explain, but I'm sure you won't understand:

"Just one table, official numbers from the IRS."

Your official documentation says that profits up to $47,025 are not taxable. And you ask on the forum whether profits of 45,000 dollars are taxable.

Are you really that stupid or can't you read?

[TaxAttorneyCPA]

Hi friends,

This is my area, so I’ll do my best to explain and try to help.  Your capital gains tax rates depend on your total income and tax bracket.  If you don’t have any income and no capital gains other than crypto, then you can calculate the tax due on your crypto sales using the tax bracket.

If you had no income, no capital gains other than crypto, and sold crypto at a $40k capital gain, then there would be no  tax due.

However, if you had say $50k of income and then $40k of capital gains, you’ll be paying tax.

Please let me know what other questions you have.

[philipma1957]

you will get audited and asked to prove how you lived in some cases.

A lot depends on when you sold the 100000 in btc and made the 45000 profit.

If you sold in January say the 3rd and it was a long term gain of 45k and you now have 100000 k to live it would be reasonable to say you lived off the 100k sale proceeds for the year.

If you made the sale in Dec some numbers 100k with 45k profit. they will come after you for proof of living.

no one can live from jan to nov with out money.

So you would need to show you had some savings and made withdrawals to live.

if you can't do that you will likely get an assessment on income for those 10 months and then you be over the 45k profit and cashout in dec of the year.

So no one can answer your question . without know all the sales data meaning the day or days you sold the coin.

[zasad@]

you will get audited and asked to prove how you lived in some cases.

A lot depends on when you sold the 100000 in btc and made the 45000 profit.

If you sold in January say the 3rd and it was a long term gain of 45k and you now have 100000 k to live it would be reasonable to say you lived off the 100k sale proceeds for the year.

If you made the sale in Dec some numbers 100k with 45k profit. they will come after you for proof of living.

no one can live from jan to nov with out money.

So you would need to show you had some savings and made withdrawals to live.

if you can't do that you will likely get an assessment on income for those 10 months and then you be over the 45k profit and cashout in dec of the year.

So no one can answer your question . without know all the sales data meaning the day or days you sold the coin.

How difficult it is to live in the USA

In Russia, the Labour Ministry will start estimating the number of Russians employed in the shadow sector, but it is all to no avail.
I have many acquaintances who have worked unofficially almost all their lives and have no official work record.
This threatens that women in 60 years and men in 65 years will receive a minimum pension (now it is 100-150 dollars).
https://www.rbc.ru/economics/26/09/2023/651187059a794736c21c8231

In Russia, I have never heard of a tax inspector asking a citizen how he lives. In order not to provoke a conflict, you can say without specific data that my relatives help me. This is not taxed and is not considered income.