Selling Ethereum

[NatureMoves]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

[asriloni]

that means if you are getting the capital gains and you must have reported it to the IRS. I thought that if this article will be really useful for you about the taxation in US https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US

You must also see the tax rate in US https://www.forbes.com/sites/shehanchandrasekera/2021/03/09/whats-your-tax-rate-for-crypto-capital-gains/?sh=2698eed171e2

This article will give you complete guide about that https://www.coindesk.com/crypto-tax-2021-guide

[Jawhead999]

If you didn't know any basic of crypto taxation better to hire an accountant to manage/calculate your tax, because it's much complicated to calculate it yourself. It's not simple as when you know your capital gains/losses, you will need to multiply with fix % but you need to know about your status, how long you invested, what you've do with your crypto (e.g. single, married, short term, long term, staking etc).

[v3liana]

To be honest i don't really know about the TAX in USA but i believe if you got profit from your investment it will definitely be taxed. I think if you don't really need to use ur money, eth is the best investment and i don't think u need to sell it even though you already get 2x from your initial investment.

[devollito]

So in the US every capital gain will be deducted to tax now ? Where did they know if this guy already get a capital gain ? He said that he only withraw it for $30k. Is the us base exchange track every user transaction at what price they bought ? And if this guy does not report to IRS wwhat happen ? And how much the penalty ? In my country there is no tax for crypto.

[semobo]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

No, there is no tax for you when you just sell the capital amount and continue to hold the gains.

But you should report your conversion and mention it as converting the capital not the gains and you will have benefits on gains if you manage it to hold the investment over a year to reduce the tax rate into half.

[bittick]

If you're a US citizen didn't coinbase already have a service where they gonna take care of it for you and what you need to do is to fill some form? I mean coinbase literally have a department specialized for that
https://help.coinbase.com/en/coinbase/taxes-reports-and-financial-services/taxes/coinbase-tax-resource-center so maybe you better contact them through that since you know they are a professional in that field.
But i think you're not gonna pay for capital gain taxes before you really make the "capital gain" or the profit is still an unrealized profit but i could be wrong, better ask the professional.

[pealr12]

If you're a US citizen didn't coinbase already have a service where they gonna take care of it for you and what you need to do is to fill some form? I mean coinbase literally have a department specialized for that
https://help.coinbase.com/en/coinbase/taxes-reports-and-financial-services/taxes/coinbase-tax-resource-center so maybe you better contact them through that since you know they are a professional in that field.
But i think you're not gonna pay for capital gain taxes before you really make the "capital gain" or the profit is still an unrealized profit but i could be wrong, better ask the professional.

Perhaps the op was not aware of this coinbase already made service to make things like buying and selling crypto in the United States much easier even if you have no knowledge about the tax law,  it is good you share the information here so that others who are not aware will read this to help them understand it more better.

[semobo]

But i think you're not gonna pay for capital gain taxes before you really make the "capital gain" or the profit is still an unrealized profit but i could be wrong, better ask the professional.

OP is asking he have to pay the taxes when he doubled the invested capital which is what he mentioned as $60K with the capital money 30K then the capital is 30K+ Gains is 30K, when OP reporting the moved 30K as capital where he invested then there is no tax for it and I can sure that I am right in that.

[electronicash]

But i think you're not gonna pay for capital gain taxes before you really make the "capital gain" or the profit is still an unrealized profit but i could be wrong, better ask the professional.

OP is asking he have to pay the taxes when he doubled the invested capital which is what he mentioned as $60K with the capital money 30K then the capital is 30K+ Gains is 30K, when OP reporting the moved 30K as capital where he invested then there is no tax for it and I can sure that I am right in that.

seem you are very sure about it. users who are not from US aren't aware of that. there is no tax law yet in my country so its yet not for us. as far as i know Bitcoin is considered a property in US but since there was an announcement lately about $10K for a capital gain so the next $30K that will be withdrawn by the OP will be taxed correct?

[grabpopcorn536]

I don't know about this, if you register an account and KYC in another country before coming to the US and withdraw money through your national bank account before coming to the US, your profits are preserved. I have some friends in the US who have connected with some people overseas so that they don't have to withdraw money from banks in the US.

[Gozie51]

So in the US every capital gain will be deducted to tax now ? Where did they know if this guy already get a capital gain ? He said that he only withraw it for $30k. Is the us base exchange track every user transaction at what price they bought ? And if this guy does not report to IRS wwhat happen ? And how much the penalty ? In my country there is no tax for crypto.

I think that countries who regulate tax and taxing on income would always look for ways to tie incomes to be taxed and crypto is not far from such. I think that could be done through the banks which is the easiest way to identify incoming income and payment of tax won't be escaped. In the Nigerian kind of pattern where some accounts were tied to the banks, so such kind of accounts can't escape paying tax on such incoming income, that is just an example.

[semobo]

But i think you're not gonna pay for capital gain taxes before you really make the "capital gain" or the profit is still an unrealized profit but i could be wrong, better ask the professional.

OP is asking he have to pay the taxes when he doubled the invested capital which is what he mentioned as $60K with the capital money 30K then the capital is 30K+ Gains is 30K, when OP reporting the moved 30K as capital where he invested then there is no tax for it and I can sure that I am right in that.

seem you are very sure about it. users who are not from US aren't aware of that. there is no tax law yet in my country so its yet not for us. as far as i know Bitcoin is considered a property in US but since there was an announcement lately about $10K for a capital gain so the next $30K that will be withdrawn by the OP will be taxed correct?

Bitcoin and every cryptocurrencies are considered as assets that is why there is a capital gain tax in place that, In the US or any other country the capital gain taxes are calculated in the same way but the only difference is tax rates.

In general, we need to pay capital gain taxes once we invest in assets and making profits from it, if we are cashing out the asset within one year of invested time then it is short-term capital gains, and anything over 1 year time period then its long term capital gains.

If we only took the capital and let the gain to grow then you have to pay taxes only at the time of cashing out the gains.

[Helex]

slap your self if you are selling eth below 10k, not financial advice

[aditasetia123]

slap your self if you are selling eth below 10k, not financial advice

you wrong , OP playing very safe. even ethereum price drop its no problem for him , maybe he can buyback using initial capital so get doubled is ethereum amount.psychology safe now and emotion could controlled when he already hold their money back. next step only wait new all time high for ethereum.

[pawanjain]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

Taxation differs from country to country. So you will have to do a little research and find out the taxation guidelines for cryptocurrency for your country.

Also, you don't have to pay the tax just for selling the cryptocurrency. You will only be taxed when you withdraw the gains to your bank account.
You can keep buying and selling until you want. Taxations levy only when you withdraw the profits to fiat.

[ahmia39]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

I think there is no tax when you buy and sell Crypto, it's just that you need to pay maker and taker fees. But taxes will occur if you have made crypto a real currency. Taxes that you have to pay through the bank. And as long as you haven't withdrawn it, the tax will be borne by the exchange platform in America.

[traderethereum]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

Maybe if you withdraw your profit into your bank account, you need to pay the tax but if you keep the profit in the exchange, I think you do not have to pay the taxes.
I do not know how your government will apply the tax for people who make money online, but I suggest you follow their rule because that can make you safe from a problem.
You can ask your authorities about paying the tax from the crypto to understand how you can follow their rule.
You can hold your ethereum and not sell it right now as the price is down too deep.

[Lantind]

If I invested 30k in Ethereum and when my investment goes up to 60k, and I sell 30k just to get my initial investment back, will I be taxed on that? I live in the United States and just bought Ethereum this year.

No, because there are no tax rules for that, and recently I read that if a YouTube user has a special income, he will be taxed if the user lives outside the Americas, now that's not the case for crypto.

[Dexion]

From what I have experienced so far, I have never been required to pay taxes on my crypto profits, it's just that there are fees that must be paid in every transaction I make. I'm also looking for regulations that say there is a tax on crypto income until now I haven't found it, but if there was, I as a tax-compliant person would still pay it.