Quote from: tinerd on February 17, 2021, 09:24:55 PM

Is it different whether you receive cash vs BTC?

Quote from: odolvlobo on Today at 01:08:25 AM

Quote from: tinerd on February 17, 2021, 09:24:55 PM

What are the tax implications of selling a physical coin on here? Is it different whether you receive cash vs BTC?

Assuming you are in the U.S., it is not complicated. It is property so you report it as capital gains. The gain is the difference between the price you sold it for (in dollars at the time of the sale) and the price you bought it for (in dollars at the time of the purchase).

For example, if you bought it for 1.05 BTC on 2012/01/03 (I think that was his price), you paid the equivalent of $6. If you sold it today for 1.1 BTC, you sold it for the equivalent of $57,200. You pay capital gains tax on a gain of $57,194.

If the OP were to receive BTC as part of the transaction, the cost basis of the BTC the OP receives would be $57,200 (in your example), and the OP would need to account for any gain or loss when he sells the BTC for USD (or an altcoin), presumably in part to fund the payment of his tax liability. If he receives USD, he would only need to pay taxes on the gain from the sale of his coin.

Considering the amounts of money involved, it would probably be best if the OP were to consult with a tax professional familiar with his specific tax and financial situation. There are many nuances in tax law.