I have been in crypto 14 months now and yet to cash out any profits but I am just wondering when I do so how the tax works? Do I have to pay that straight away or do I have months after cashing out to pay the taxes on my profits?
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
In my opinion, you should discuss this legal matter to a local legal expert to make sure that you not violating your law in regards with tax. You should pay taxes base on the annually or on the time frame given by your government and not based on when do you feel you will cash out because you might get in trouble in case someone audit you and saw a cash balance sitting on your exchange for a long time untaxed.
Im not an expert with your law. I highly suggest to play safe and consult a legal expert.