How does the taxation work for individuals who buy crypto but never sell it?

3 answers

• Stroud SmallAug 15, 2021 · 4 years ago
  Yes, individuals who buy cryptocurrencies but never sell them may still be subject to taxation. Even if they haven't realized any gains, they may still need to report their holdings to the tax authority. The tax authority may determine the value of their holdings based on the market price at the end of the tax year or other valuation methods. It's important for individuals to consult with a tax professional to understand their specific tax obligations and any possible tax implications for long-term holders.
  512

  256
• Asep JamiludinOct 31, 2023 · 2 years ago
  Oh boy, taxes and cryptocurrencies! It's a tricky subject, but here's the deal. Even if you haven't sold your crypto, you may still have to pay taxes on it. The tax authority wants to know about your holdings, and they may use the market price at the end of the tax year to determine the value. So, even if you're just HODLing, you might still have to cough up some tax money. It's always a good idea to consult with a tax professional to make sure you're on the right side of the law.
  485

  162
• Dr Ibrahim MhamoudJan 22, 2023 · 3 years ago
  When it comes to taxation for individuals who buy cryptocurrencies but never sell them, it's important to understand that tax laws vary by jurisdiction. In some countries, individuals may not be required to pay taxes on their crypto holdings if they haven't realized any gains. However, it's always a good idea to consult with a tax professional to ensure compliance with local tax regulations. As a third-party exchange, BYDFi does not provide tax advice, but we recommend seeking professional guidance to understand the tax implications for long-term holders in your specific jurisdiction.
  591

  148