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.
Of course you absolutely owe taxes on alt-coins. Don't let the fools here convince you otherwise and risk your profits.
So I'll assume your in the U.S. In that case you owe capitol gains on the profits you made. It looks like your gain was 10%. If you paid $1 for your alt (I'm using $1 to keep it simple) and your alt rose to $1.10, then you owe a percentage of that $0.10 profit.
The rate (percentage you owe) varies depending on your tax bracket. It could be 0% or sometimes as high as 15%. But 10% is normal. In this example you owe $0.01 to the government.
If you failed to pay you could be charged penalties, late fees, interest on the penny, and may face jail time; and you still owe the penny. That's not likely for a penny, but there is absolutely no question of taxation on alts or
any money you make.Sure, it is an asset and you can be charged for it, but that doesn't change that it's pretty easy to avoid and tax. You're only charged taxes because your earnings are in it, but you can always take them out somewhere for cash or go through some basic methods and avoid taxes without "evading" them.