Crypto Taxes in US with Examples (Capital Gains + Mining)

Wanting to learn more about how cryptocurrency taxes work in the United States? In this video we use examples to explain how the IRS wants you to pay short-term capital gains, long-term capital gains, and mining income.
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[@bryonschowalter564]

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[@bryonschowalter564]

(SOLAR CLOUD FARMS)

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[@Wellingtonluzia3]

People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.

[@Stephenfanos37]

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[@nandhakumarthirumurugan8503]

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[@nikhiljoshi6022]

The content you guys produce is so good! I’m not even subject to US tax, but I watched this video anyway!

[@dannyzamorano7005]

Great video, although it didn't cover a very important aspect of crypto mining: EXPENSES. I've been doing research on it and it doesn't seem clear cut. I would think miners would be able to account for expenses such as electricity and the cost of the equipment (i.e. mainly gpus and other computer parts). I would appreciate if @Whiteboard Crypto or anybody else can shine a light on this topic. Thanks.

[@sEYbaStIeNS]

don't risk tax invasion...just change country of residency XD

[@Mr5Stars]

Tax on the Gains. So if someone invest $1000 in Crypto. That investmemt doubles to $2000 , then one cashes out the original $1000, one should NOT get taxed for withdrawing the original $1000 investmemt...... .correct?

[@plan9203]

Good video that covers the basics. HOWEVER, I think it is incredible naive to think that US government would EVER give up on trying to tax crypto gains. If it came to that the solution for them would make it completely illegal. How enforceable that is, is another question. At the moment the avenue for leverage on this scenario, is that most of crypto's utility and value coming from being able to convert it back to fiat, which the government has much more power and surveillance capability of.

[@sayhowling]

they should've just get rid of tax on people who only mine and withdraw but not trading

[@A_90210]

Love how you cover all bases, through and to the point.

[@johnshearing]

What if I buy 1 ETH for $1000 and buy 1 ETH the next week for $2000 and sell 1 ETH the next week for $3000? Which ETH did I sell? Did I sell the one purchased for $1000 or did I sell the one I purchased for $2000? The tax will be different depending on which ETH was sold. Who gets to decide which ETH was sold? Does the IRS have a law or policy about this? Thanks

[@locotx215]

Still waiting on an answer for this one.

[@nicholastran318]

How are taxes reported on crypto assets bought/sold outside of centralized exchanges? For example, I bought $100 worth of ethereum on coinbase. I then transfer that ethereum outside of coinbase and used a decentralized exchange to purchase $100 worth of 'token x'. Held 'token x' for a year and made $100 profit for a total of $200. Traded 'token x' for ethereum to transfer back into coinbase to convert into fiat cash. How does the irs identify that as long-term capital gains? Or is it automatically considered short term gains?

[@mrright1068]

Fair Share? Who decides that?

[@wickway]

Interesting video. I work for the IRS and will be sending out a CP59 form to you so that we can sort out your lawn meowing business income. You might get a refund so don't sweat it.

[@avitolourenco]

quick question: lets say im dollar cost averaging my position in, how is short term or long term calculated? lets say im averaging for months 1-9, and sold on month 15, now I sell 10%, will it be calculated that I have sold my holdings from month 1 or 9? since based on this it could become short term to long term. Can I control this?

[@jnerikaat]

Thank you for a beautiful, articulate, well-paced, no-nonsense educational video. Well done. Keep it up!!!!

[@hatersgotohell627]

How do you cash out crypto without using a snitching exchange?

[@ChrisSmith-bk7rb]

Can you do the video on tax evasion next?

[@WhiteboardCrypto]

Maybe on how to avoid it ;)

[@sayrith]

@@WhiteboardCrypto tax avoidance=legal Tax evasion=illegal

[@raztube90]

You are wrong about how taxes work. If you make half a million you don’t pay %37 on all of it. The first $9,252 will be taxed at 10% and the rest taxed at %12 and etc etc.

[@davidomar742]

thats income tax, not capital gains

[@YuriParkin]

Thank you so much for your hard work! 😊 I’ve got a question: 🤨 I have a set of words 🤷‍♂️. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I don't know what they are. What should I do with them? 🤷‍♀️

[@cutback443]

great video dude!

[@justinmerrill3737]

Damn, Americans forgot about the Boston tea party, huh? Tax evasion ha more like pay the government not to do their job😂😂😂😂😂😂

[@jeffreyd508]

Thx. What if I bought one btc for 35k two yrs ago. The current value is 45k, but I traded the one btc for a car or rv that is worth 25k. Can I take a 10k capital loss?

[@thegoatsupreme]

I've been doing a lot of swapping and trading coins in 1 to 20 dollar ranges. Like I'm trading shib at 90 shib at a time sometimes. How the eff are they gonna tax that? I've also kept no records. I didn't know I had too. I'm mew to all this. Only understood I owed taxes when I sold. Not traded cryptos for each other. Ugh taxes are gonna suck.

[@LisaVallier]

I frequently hear people discussing the returns they earn from investing in Bitcoin and Forex. As a beginner, how can I get started with it?

[@djsnowpdx]

Does not cover what happens if crypto in your account loses value, but I suppose I can guess. The losses you realize can be counted against your capital gains that year.

[@n3jikun]

How does the taxes apply if you transfer your coins from coinbase to your hard wallet?

[@ADucksOpinion]

what if i mix mixing coin with coin i paid for? how does that even work? i been mining for 6 months, i got no clue what the numbers are.. Im sorry i think if they are telling the IRS what we make the IRS should send us the info on what we need to pay, not make us do it.. god i hate it here

[@p0zyrPB]

Can you name good crypto exchanges that may not be subject to capital gains?

[@Blackice929]

All DeFi (decentralized finance) platforms & DEXs (decentralized exchanges). Just don't use centralized platforms like Coinbase and no KYC.

[@EciruamreklaW]

Using a browser exchange through a crypto wallet

[@itsvmmc]

Pancakeswap

[@journeywithdavidh]

How do you calculate taxes on token-generating NFTs, airdrops and vampire attacks?

[@Embracemydestiny]

Thank you for this video !!! I would be so very grateful if you would do another video but this time with koinly ? And explain 1. If we didn't manually calculate things, are we screwed ? 2. Some defi ecosystems don't have a CSV file to download, which is what these tax softwares want from us to import. What do we do then? 3. How are autocompunders treated? Is there a difference tax wise from a regular yield farm and an autocompounder? 4. How do we calculate our gains from play to earn defi crypto games like defi kingdoms ??? 5. How do we find affordable CPAs in the states ? 6. There's so many wallets and exchanges that aren't supported on tax software like Terra and AVAX on koinly. I know there's a way to manually do it but that goes back to the above questions because you need a CSV file you don't have to make it manually. I'm frustrated and it feels like I've not found a good answer to these questions 😪 not even reddit lol For USA Thank you !!

[@kashkount6600]

never been greedy ive sleep behind ymcas before ill be making 19k a day mining btc soon i plan to withdraw every 3 months ill pay that 37% lol

[@sifeij]

isn't it over all in one year for the capital gain instead of each transaction?

[@sia_ibk]

Hi Theodore. Awesome video. Can you please recommend a good professional in crypto taxes and accounting

[@theradbrad0107]

👆👆

[@dsamining8610]

WHAT ARE YOU TALKING ABOUT, NOT PAY TAXES ON CRYPTO. You think the US government is going to through away billions of dollars in tax revenue. If you believe that, I have deeds to the Brooklyn bridge to sell you very cheap.

[@davidshamiri1448]

If you bought bitcoin $1000 - 9 months ago and it gained 50%. $1000 - 1 month ago and it gained 0%. Sold $1000 of bitcoin 2 weeks ago, do they count it as the $1000 from the first purchase or second purchase? How do you separate sales, does once you buy more pf one type of crypto, they join together and anything that is sold afterwards, regardless of buy/sell date, count as the capital gain? Do types of crypto get separated? Or taxed as total gains of platform's account, What if I bought $1000 1 month ago and $1000 13 months ago, is half taxed as long term gains and the other half as short term gains? Any good video you can refer me to to answer nuanced questions about crypto tax?

[@adriancjones]

Great info, I have one question. If you bought 1 sol for $90 and it went up to $220 and you pulled out the $90 of the initial investment. What would you owe in taxes?

[@TheInvisibleOrange26]

Yup because the US government is a joke

[@Dave-um7mw]

Feel like you left out a very important part. LLCs and other corporations. Going into them is probably too much for this video but they're certainly at least worth mentioning.

[@UNIZEN]

How are capital gains taxes assessed on a ATS/ STO exchange?

[@keithingreene662]

I understand the concept of long term capital gains but what I do not understand is how you are suppose to hold a crypto for an entire year with the stock market fluctuating as it does to benefit from the lower tax rate. What am I missing??

[@toyshop5675]

Who's here after India put freaking 30% tax on all crypto profit transactions? U.S have a systematic tax according to the amount to you invest. India should learn from U.S crypto tax system.

[@gixxis3264]

When did the US introduce tax laws? From my research there isn't one!

[@morsteen]

Is it the value when you receive your mining payout? Or when you are still mining it before the payout? I was told it's when you actually receive the payout into your wallet.

[@yatarookayama8329]

6:10 Good thing i'm Europe and here we don't pay taxes for Crypto ! 😏

[@michaelkaniecki1998]

Haha - less likes than your other videos - wonder why... ((:

[@noelg9795]

Bitcoin is now foreign currency. Why we need pay tax for exchange one foreign currency to other?

[@ATMiro]

Do you have to pay taxes when you sell and don’t make profit

[@PerpetualProfit1]

Unless you wrap your staked crypto right?

[@dsamining8610]

For miner out there, Mining and buying crypto is the start of a taxable event, not the total end to one. Only difference is mining is consider income (like an hourly job) and has to be reported. When you sell or trade what you mine, you have to follow standard capital gain tax events. It's only though when. what you mined gets paid to your wallet is the starting point. Just like any other pay day, you need to pay your taxes when it hit your wallet. So timing is everything, so if the price is going down wait a bit. IRS hasn't gone into detail about mining payout. Yet...

[@dgafstfubznatch]

u cant get more passive of a investment lol ,this is all investment and only capital gains shud apply when you sell

[@veilsides2k2001]

I'm a miner, is there taxes for transfer eth from coinbase to outside the US exchange.

[@itskrilla0x]

So what if you are buying on a decentralized exchange like Pancake Swap how will they know then?

[@Sarah-fq5no]

This is a great video, I learn alot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies. Thanks to Mrs. Joyce Albert for improving my portfolio. keep up with the good videos

[@johntrevizan8183]

Good info. Do you mind hooking me up with her?

[@benjaminlucas2274]

​@Brownville Charles Thank you 😊

[@dougleydorite]

Subscribed! This needs more views! I havent done too many sells but keeping track of all of it seems like it will be a nightmare. Hopefully coinbase prints out a report of everything and mails it to you like the stock exchanges do

[@WhiteboardCrypto]

I'm not sure if they mail it, but you can definitely print them off when logged in. Only one that won't let me is Binance ☹️

[@78890wds]

Corruption !

[@novastar5564]

Love you guys!!🤟✌️👍👌🖖😎

[@brandonl2420]

This video was incredibly helpful to understand how all this works. Thank you!

[@HT-sd4to]

What if I gained $10 from 1 stock/crypto, then sold it and buy a diff one? Will I pay tax for that $10 gained?

[@vineetshetty07]

Yes

[@angelrock1978]

It would be amazing if you could update this video and talk about what can be deducted. I am hoping that trading fees are deducted. Could you make a video about how people can legally increase their capital gains deductions? Can people create an LLC for investing in crypto and other assets such as stocks and deduct things like their computers, travel to crypto conferences? office space? other?

[@gomonkeyfly]

So if you mine 1btc every month for 2 years, then the long term gain is realised when you sell the coins from older block? The gov doesn't lump them together? So miner should keep multiple wallet for different time period? Like one for each year?

[@mx3727]

You'll need to do some reading on the IRS website, specifically regarding "cost basis", to calculate what the profit is for each BTC you mined that you sell later

[@crystalpoindex]

Great video. I'm a small timer so I know I am currently exempt from taxes this year. But if any of my crypto moons I'll definitely reference your video. I would like to ask how are gas fees and other fees handled when buying and selling crypto? Does the seller get to write that off as well? For instance when I bought $1000 of Ether to swap for Safemoon I was left with only $700 worth of Safemoon. Is the initial reportable number $1000 or $700? Same with selling there are fees there as well. Also define holding. Is holding just transferring to a wallet and leaving it alone for a year or can I also buy and sell with this amount then cash out to my personal bank account after a year? So many ways of looking at this. I need a class.

[@DJ_MH_Remixes]

💡 Question. Do you pay your tax over the whole income or only over the profit?

[@neilsupillo]

make a ICO video

[@tarekal-abboud1501]

Thank you

[@pablop5937]

What about yield farming can you cover that as it relates to taxes please?

[@LamLawIndy]

Re: mining income. You can also deduct your expenses associated with mining. I use a Kill-o-Watt meter to measure the KwH used by my farm. Then, I multiply the number of KwH by the cost per kWh (about 11¢) to get my electricity expense.

[@SloppyHorrorPodcast]

Good video man!

[@WhiteboardCrypto]

Thanks for the feedback! In this early stage of our channel, we don't get much, but really appreciate it :D

[@SloppyHorrorPodcast]

@@WhiteboardCrypto this channel will 100 percent get bigger if you guys keep it up. I’d recommend going live one time on a bullish/bearish crypto day.... many paper hands and new crypto folks out there daily looking for reliable insights!

[@mchet9699]

Taxes suck

[@byynee]

Thank you for this. Love the content on the channel!

[@mohammedislam9352]

Best video I've seen about taxes and crypto. Thanks you sir.

[@abeeiland1583]

Coinbase

[@coolzo2524]

Coinbase

[@briankafsha8466]

Good video. I have a question. Hypothetically, what if I bought 1 bitcoin at $10,000. Sold it at $60,000. Bought back when it went down to $50,000, but sold (out of fear) at $30,000?

[@WhiteboardCrypto]

50k gains + 20k losses = 30k taxable gains :)

[@abanger]

Does income include the money from selling your crypto?

[@youfelixx]

Do people actually pay these taxes? I would love to have answers

[@sternraphael1029]

Does buying on a dex instead of an centralized exchange a preferred way to avoid capital gains (asking for a friend)

[@PerpetualProfit1]

How did you track what you mined?

[@ernestoisjust1048]

Circa, minute 4:42, "...they will snitch on you..." So, an exchange reporting public transactions, as they are required to do, is snitching? Bad look, Whiteboard.