US tax on crytos
So, my fellow Steemians, I have a question that I hope you can answer for me.
If I hold cryptos that I never cash out, but have gained a lot in value over the year, and say I have nothing in a savings account because I put it all into cryptos, does that mean that I am forced to cash out some of my investment just so I can pay the bleeping tax?
Does that not sound criminal to make someone lose investment power?
What say you, my fellow Steemians?
You only pay taxes after you cash out. (((You don't have to cash out if you don't want to)) If your a day trader, you have to keep track of your trades.
But what if you trade some of your holdings for another a few times with different cryptos, but still hold? If you have to report those as taxable events it seems like you have to pay capital gains on them, and in that case in order to pay that, if you had no other available capital, you would have to cash out to pay it, no?
That's complicated. You have to pay a fee to make trades. It's sort of a net loss when you buy.