welter on Warpcast

welter pfp

has anyone withdrawn $20k or more of btc/eth to their bank account? how is it taxed? what's the best way to withdraw crypto to bank/cash with litte to no tax?

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nova🎩 pfp

@hypernova84.eth

Assuming you are in US, you owe taxes as soon as you make profit on chain. Withdraw to fiat is irrelevant.

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Greg pfp

the taxable event is when you sell, not transfer afaik sell in coinbase for USD (this incurs capital gain/loss), withdraw to bank (this is not a taxable event afaik). coinbase will generate a report for you next tax season or do the first part onchain and use a crypto tax tool to keep track

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simpledelusion pfp

welter g buying a whip! congrats fren

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links 🏴 pfp

In Canada rn apparently amounts like $20k will be flagged by your bank and you’ll have to explain source of funds before they will release it. Not all banks, YMMV. This is secondhand info.

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miguelito pfp

You are supposed to pay estimated taxes on it. The exchange doesn’t withhold it for you, typically. Would consult a tax professional

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n64jerry pfp

i think USA you gotta pay short term capital gains tax (unless you held for over a year before you sold) bc taxed as ordinary income ie if you are in 25% tax bracket and you get 10000 shares at $0 cost basis then it becomes $1 a “share”/ unit etc then you should expect to pay 25% of $10000 ✨ not tax advice ✨

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Leighton pfp

recommend you delete this cast. Happy to give input if you DM

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matthewb.eth pfp

offramping isn't the taxable part, it's swapping ETH to e.g. USDC for which you'll pay capital gains depending on your cost basis typically I'll swap ETH to USDC via DEX to get a better rate than a CEX and then offramp the USDC. my accountant recommended Koinly for tax reports and it worked fine.

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lightcap pfp

Buying a coffee or an NFT is a taxable event sadly. The minute you “sell” a holding. What really cooks my noodle is that swapping ETH for wETH is too. ‘Murica.

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Jancarlo pfp

The moment you exchange the BTC or ETH to any other currency, whether it be another cryptocurrency or FIAT, it is a taxable event and treated like a capital gain or loss. Long term capital gains (held for >1 year) are taxed at a lower rate than short term.

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Felix pfp

I did, i filled a report next year for it. You can send it to me and i’ll do it for you 😂😂😂

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Aniketh pfp

Good question, I had this doubt too.

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Hotch 🎩 pfp

Just yesterday I set up my account on Crypto Tax Calculator… totally worth it so I’m not surprised next year with how much I owe You “integrate” your wallets, it reads all your onchain history, and then shows you what your short term and long term capital gains are. Your % is based on your tax bracket.

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Tony pfp

(assuming USA) It's only "taxed" when you find your basis, calc the profit or loss and report it to the IRS. There will be no withholding by any party, you're on your own

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Calico Jack 🎩🍖 pfp

Calico Jack 🎩🍖

I've withdrawn 21k, you hit fees from the platform your pulling from, but taxes are done by you manually at tax season time.

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Rudi pfp

Ask ChatGPT. Transferring assets is not a taxable event. Whenever you realize an asset it is a taxable event. Examples are swaps, trading crypto for Fiat and liquidating loans. You only tax the gains. I recommend keeping good books of all transactions you make, otherwise taxation may be hell. Good luck

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Ashley pfp

I wish 😕 ! Lol but i think cashing out at a bitcoin atm is cheapest route…

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