Assume I traded 100 times between BTC and LTC and I earned $100 IF I sell all coins at market price.

However, I don't want to sell my coins yet. How I can report to the US tax?


The IRS treats digital currencies as capital assets and are therefore subject to capital gains taxes. Any disposition of these digital currencies, including trading and spending, is a tax event and capital gains must be calculated in USD.

References: https://en.bitcoin.it/wiki/Tax_compliance

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  • What I should put for the USD price of the BTC and LTC if the platform does not have a BTC-USD market? – Marco Nov 13 '17 at 4:23
  • Use a price from another platform then, like coingecko – MeshCollider Nov 13 '17 at 4:50

I'm not a tax accountant or lawyer, but usually capital gains tax is only payable when you convert your assets into fiat currency. I would expect that the BTC-LTC trades are not taxable - only the sale to USD would be a taxable event.

If during the trades, you sold your (for exampe BTC) tokens for USD, then used USD to buy more (for example LTC) tokens, then the sale to USD would be taxable.

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