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Author: Admin | 2025-04-28
This creates either a profit or a loss for the first cryptocurrency and a new cost basis for reporting the second. Make sure to keep track of all crypto-to-crypto trades. Do I have to pay tax if I transfer crypto from wallet to wallet? If you do not own the second wallet, then yes, you must pay capital gains on the coins you transferred since you are effectively 'selling' them. If you own both wallets, there is no sale, and therefore there is no tax-reporting liability. Can I pay my taxes in the coins I hold? Even in 2024, most jurisdictions will not allow you to pay any taxes in crypto of any kind. There are a few places, such as the Swiss city of Zug(7) and the US state of Ohio, among others, to allow residents to pay their taxes directly in Bitcoin. Overstock.com became the first US company to pay all of its taxes in Bitcoin(8).
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