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Q🎩
@qsteak.eth
Need a crypto tax expert opinion. If someone were to purchase a large amount of ETH and let it sit for a year before doing any other transactions; would this allow you to negate all the annoying tax events that occur by just using your ETH. Would they not become long term?
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henrywif🍵
@hz
Let's say you purchased 100 ETH at $2,000 each. After 1 year, you use 1 ETH (now valued at $5,000) to buy a nice 🎩. You would have to pay long-term capital gains on $3,000 because you sold 1 ETH that was acquired for $2,000, and it appreciated by $3,000.
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Q🎩
@qsteak.eth
Ahh. Yah forgot that part. But you could get a benefit from using old ETH as you could be paying 37% on that $3k vs 15% for long term?
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Squeeze
@squeeze
FIFO cost basis methodology already forces you to go from oldest to newest, so yes, you will benefit from using the older ETH acquired.
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