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If you use your crypto to buy a Tesla, does that trigger a taxable event?
Does that happen with other currencies?
Long term capital gains vs short term, assuming you sell. Simply holding is not taxable.
Chief
Gotcha. Thanks!
Crypto is treated as an asset for tax purposes... you have a basis (what is cost you to buy) and sales proceeds (the net amount you generated from selling the asset). If you held the asset for less than a year, you pay short term capital gains (taxes as regular income) , and if you held more than a year is long term capital gains ( probably 15 or 20 percent for most on here). If you buy a Tesla with the proceeds it does not update your tax obligation
Yes