Tax when moving Bitcoin between accounts and wallets

[alextradesbtc]

Hi,

I live in the US. When I move Bitcoin between my accounts, for example from Coinbase to Coinbase Pro, or from Coinbase to my wallet, is this considered a sale and I need to pay taxes? This is important as I already have significant gains, and I don’t want to pay short term gains taxes right now.
Does Coinbase create 1099 for moving between Coinbase and Coinbase Pro or Wallet?

Thanks,
Alex

[1715250162]

1715250162

[1715250162]

1715250162

[HeRetiK]

As long as you stay within one currency (e.g. transfering Bitcoin from your Coinbase account directly to your wallet) it shouldn't be a taxable event. I've never moved funds between Coinbase accounts but from the looks of it they just transfer the crypto balances between accounts without any intermediate exchange steps, so this transfer shouldn't have any tax implications either. It may be worth keeping record though in case you ever need to proof that you just moved coins between your own accounts / addresses rather than transferring the coins to another person as part of a sale or similar.

I'm not an accountant though so take with a grain of salt

[coolcoinz]

According to the definition "Taxable events are triggered by earning money, taking profits, or selling assets."
You aren't doing any of the above by moving your coins from one address to another. It wouldn't make sense if an investor had to pay tax every time he changed a broker.

[alextradesbtc]

Thanks for the answers! How about the transfer from Coinbase to my hardware wallet? Coinbase wouldn‘t know that I am transfering to myself. Do they only file 1099s when going from BTC to USD, or also for transfering BTC to a wallet?

[HeRetiK]

Thanks for the answers! How about the transfer from Coinbase to my hardware wallet? Coinbase wouldn‘t know that I am transfering to myself. Do they only file 1099s when going from BTC to USD, or also for transfering BTC to a wallet?

It doesn't matter whether you withdraw to a hardware, desktop or mobile wallet (or even directly to another exchange). As long as you don't exchange it for another currency (crypto or fiat) before withdrawing it from your Coinbase account there's no sale taking place.

[figmentofmyass]

Thanks for the answers! How about the transfer from Coinbase to my hardware wallet? Coinbase wouldn‘t know that I am transfering to myself. Do they only file 1099s when going from BTC to USD, or also for transfering BTC to a wallet?

as far as coinbase not knowing that you're transferring to yourself, that may change very soon: https://bitcointalk.org/index.php?topic=5293390.0

anyway, when they send a 1099-K to the IRS, it reports gross trading volume---BTC/fiat or altcoins.

deposits, withdrawals (to your hardware wallet), internal transfers between coinbase and coinbase pro, etc do not count towards that number.

note: in a surprise twist, coinbase will stop issuing form 1099-K, and they won't be issuing form 1099-B like square does either. https://help.coinbase.com/en/pro/taxes-reports-and-financial-services/taxes/coinbase-tax-resource-center

[Harlot]

Thanks for the answers! How about the transfer from Coinbase to my hardware wallet? Coinbase wouldn‘t know that I am transfering to myself. Do they only file 1099s when going from BTC to USD, or also for transfering BTC to a wallet?

As long as it is a regular Bitcoin to Bitcoin transactions no matter what kind of wallet it is this won't be considered taxable. Its the same as using Bitcoin in sending/paying it to another person with a different wallet this is considered as a payment transaction not some kind of trade transaction which you have a chance to be earning in return. Also @OP what is the thing that complicates you in this matter? Since wallet to wallet transfer without exchanging any cryptocurrency isn't really taxable so I am wondering why you are confused about this one.

[maculeth]

not taxes, but fees. So every time you make a transaction you will definitely be charged a fee and how much the fee to pay depends on your gas price setting, which determines the speed of your transaction. but for certain countries, there may be cryptocurrency transfer regulations, but I don't know much about that yet.