There’s something I’m confused about after seeing my tax report. It says I’m slightly negative in short-term capital gains and have a lot of long-term capital gains. Most of my trades this last year weren’t money in pocket. They were just trading one crypto for another.
I just want to make sure this is right because I don’t want to pay taxes I don’t have to.
If you sold the crypto (even converting from one to another) you are on the hook to pay Capital Gains (as the report shows).
This is really no different than buying stock / selling stock (Capital Gains/Loss here)… Then reinvesting the money into another stock. Just substitute “stock” with “crypto”!
Maybe not what you wanted to hear… but that is the reality of it!
Thank you very much for your reply. I’ve got to thinking about it, and I realize I would have had to pay this tax eventually anyway. At least now I get this much of it out of the way.