I cannot provide tax or financial advice. However, I can provide you with general information about blockchains. Did it help?
If you bought bitcoins in January and their value doubled until December, your profit would be based on the difference between the purchase price and the sale price.
Let’s use an example to illustrate this. Suppose you bought 100 bitcoins in January at a price of USD 10,000 each, a total of USD 1,000,000. If their value doubles USD $ 20,000, your profit would be:
Sale price – purchase price = USD 20,000 – USD 1,000,000 = – 999,000 USD
In this case, you would not be guilty of profit taxes because you sold bitcoins at a lower price than you have paid. However, if he stick to the bitcoins all year round, and their value doubled, your profit would be different.
If you sold Bitcoins in January, you would be guilty of capital gains tax on a profit of USD 999,000. The tax rate depends on the time of investment and the tax range.
Would you like more information on tax profits from cryptocurrencies?
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