Quote from: nullama on Today at 08:33:22 AM

Quote from: Apocollapse on July 22, 2024, 08:44:49 AM

~snip~
It's true you will not be taxed for converting USDT to BTC or vice versa, but if you sold your BTC or any other altcoins higher than what you win from gambling, you will need to pay capital gains tax.

Let's say you convert $5,000 to BTC, you will get 0.074 BTC.

In sports you're betting in USD, not in BTC, so you will see $5,000 in your account, you stake all of your money on football match where the odds is @2.00.

Turns out you win, which mean your money now $10K or 0.148 BTC.

You choose to withdraw your coins to exchange or wallet, then you wait until bull season.

Bitcoin price up, your 0.148 BTC now worth $20K.

If you sell all of your coins, you need to pay both taxes, $5K is the profit from gambling and $10K is the profit from capital gains.

Yeah, but in the end you only end up paying taxes on the extra money you get.

If the value of BTC increases and you sell, you made a profit, you got extra money.

If you got paid in BTC, you got a profit, and so on.

In the end you only pay tax on the increased amount of money that you end up with.

You don't pay tax twice, or anything like that, only when there is more value in the end than when you started.

Even if you don't sell all your coins, if you bought two at $1 each and sold one at $2, you pay taxes on that extra $1.

In this case, isn’t it better to keep your capital entirely in crypto? and if you want to exchange for dollars, use a crypto x crypto broker no kyc... Paying taxes is only one option when you are in the cryptocurrency ecosystem. It is interesting to use the decentralized financial system to our advantage, instead of exchanging for fiat and paying taxes every time.