How are Cryptos Taxed Short-Term

If you blindly day trade your cryptos, you might be in for a surprise when it comes to taxes. Since cryptos are considered property sale, there is no wash sale rule as with stocks. Watch to find out more about what the tax bill will be like if you sell your cryptos in less than 1 year.

How’s it going everybody this is beat the bush today i’m going to talk about my dogecoin holdings if i held on to it or if i sold this video is brought to you by weeble don’t forget to get your two free shares of stock just for signing up and depositing a hundred dollars you can now even buy dogecoin on it if you really want to it’ll really help out my channel if

You sign up for this and get your two free shares check out my affiliate link down in the video description below at this point you guys are probably really curious about my doge coin investments i currently have even more than before so i’m going to add a little bit in this video because you know a lot of people are probably interested where am i did i sell out

Of doge i used to have 918 000 dogecoins now i added a little bit now i have 933 000 dogecoins i added it at like 47 cents and then it continued to drop right now my total investment is let me screen capture it 319 thousand dollars uh so at one point i think it was close to like six hundred fifty thousand at its peak so it dropped yeah a good fifty percent but

I am still up about two hundred fifty thousand dollars from when i initially invested so people think that i’m going to paper hand myself and then sell off everything um it’s kind of easy to hold on because i bought in at close to 5.7 cents or so so i watch this and i just kind of kind of chuckle at it a little bit because i am not actually losing money it’s

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Kind of like paper gains and then paper losses so then i’m just like okay whatever it certainly kind of suck to see it at 650 and then drop many many hundreds of thousand dollars by now it’s about 300 000 worth of drop i also think about it this way for short-term gains in california if you work out about how much you have to pay on half a million dollars of

Short-term gains it’s around 45 effective tax rate because i am in california i still have to pay probably around 10 percent for california taxes for short-term gains so for dogecoin’s at its peak of what like 72 or 74 cents it needs to drop below let’s say about 44 cents in order to break even now let me explain how this is because if you want to be a long-term

Holder and you think hey maybe i’m going to sell at this peak and then i’m going to wait until it drops and then buy back and then you think you’re going to buy back more coins right but the action of selling it at 72 cents constitutes a taxable event when this happens cryptocurrencies is considered property sales so there’s no wash sale kind of rule here where

If you buy back within 30 days they can go okay your basis gets ported over to the new purchase this is not it when you sell at 72 cents right there it’s a taxable event it becomes short-term gains taxed at around 45 effective tax rate because you know it’s about half a million dollars so right there half a million dollars becomes roughly 250 000 if you buy it

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Back in you have to use the after tax dollars to buy back in you can’t just take the whole amount that you just sold and then put it all back in and say hey look i doubled the number of coins no you have to save some of that money to pay your taxes to pay your short-term gains taxes so if you sell at 72 cents you can only buy back at roughly 44 cents and still

Buy back the same number of coins it needs to drop below that well right now it’s at 33 cents now you’re able to you know get like maybe like 25 more coins if it drops further maybe you can get more but my idea here is that it’s really really hard to time all this stuff if let’s say you’re able to somehow pick the peak somehow you also need to be able to pick

The bottom is now the bottom is 33 cents a bottom were you able to somehow wait around and purchase at 25 cents in my bitcoin experience well it’s really really hard to buy back in because you always think oh maybe i’m just gonna wait a little bit more and then you can get even more coins so i sold the bitcoin at seventeen thousand five hundred dollars and then

I waited waited waited and it went all the way down to three thousand five hundred right as it went along i’m like is now the time to buy it’s now the time to buy and then you know 3500 came along and then i still didn’t buy into it so then i missed the train of it all the way going back up to like 60 000 so that is my lesson here um trying to sell and buy back

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In is a really difficult thing and i don’t think i can do this so therefore i’m just gonna be like hey i’m gonna be lazy not going to take the short-term gains here and not realize those taxes that i have to pay so i’m just gonna wait long term for at least one year and you know maybe lots of things are gonna happen maybe it’s gonna drop to zero i don’t know so

This is not gonna affect my life again because the 60 000 initial investment that i put in it’s not actually money that i need to survive here i spend very little every single day every single month and this is actually money that is just basically for fun for investing purposes thanks for watching this video i hope you guys enjoyed this update and the way i think

About it and how i can actually hold on to dogecoin for so long and yes i am now saying dogecoin correctly because you know the joke is getting old i was saying dog coin all the time it’s like okay i’m not gonna fight the fight now again don’t forget to get your two free shares of stock you can even buy dogecoin right now on weeble check out my affiliate link

Down in the video description below and as always don’t forget to like and subscribe to this channel thanks for watching you

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How are Cryptos Taxed Short-Term By BeatTheBush

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