Selling crypto to pay taxes?

“I don’t have enough fiat money (e.g. USD) to pay my taxes. Should I sell crypto to pay my taxes? Won’t they be taxed again?”

In general, you should always gross up your crypto sales for taxes when taking profits trading cryptocurrency. As an example, let’s say that your effective tax rate on capital gains is 33%. If you are trying to cash out $10,000 of profits from your bitcoin holdings, you should sell $15,000 worth of bitcoin and set aside $5,000 for taxes (33% of $15,000 is $5,000, leaving the $10,000 that you want to cash out). For help with your specific situation, you should consult your tax professional.

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