Hey
How do you calculate taxes on alt-coins bought and sold with Bitcoin? For example if i bought 10 bitcoins worth of Monero, and monero rose 10% and i decides to sell for that extra bitcoin, how does that become taxed? Furthermore if/when i decide to sell the 11 bitcoin i now have for fiat, how might that be taxed? Thank you in advance.
(Assuming you are in the US)
In that scenario you have a taxable capitol gain of 10%. Your tax on that gain could be as low as 0% or as high as maybe 20%. But 10% is a good guess. Note that the tax only applies to the gain and not the principal and is triggered by selling or spending the coin (any kind of coin).