Hi! I dont understand how the taxes are calculated… Whenever I swap for example an altcoin ive made a gain on to LTC just to transfer the LTC to a stablecoin I have to pay taxes for the LTC aswell…
So instead of just paying tax on the realized altcoin gain i also have to pay alot of tax on the swap between LTC to DAI
/Josef
i have the same question, please help us out here.
I hodlt a token for over 3 years. Then I swapped it to a coin. Now Koinly-Tax-report says I have to pay taxes for it. I thought I don’t have to pay taxes, when I hodlt over a year. Can someone explain this to me?
Wouldn’t this happened if I first swapped to FIAT and then from FIAT back to crypto?
You have to pay tax on the profit made between each swap and exchange. But it should only be on the profit so if you only made say $2 between LTC and DAI that should be all you pay tax on.
In addition, in the US, if you hold an asset such as stock or crypto for less than one year before you sell it (or swap it as that is selling one for a certain value and then buying another coin at the same value), you pay short-term capital gains tax. If you hold it for more than one year before you sell it (or swap it), you pay long-term capital gains taxes - which is lower than short-term. Uncle Sam always gets his taxes on gains no matter how long you’ve hodled before selling (or swapping).
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