this post was submitted on 05 Dec 2024
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The original post: /r/cryptocurrency by /u/renegadegho5t on 2024-12-05 02:32:11.

So I swapped some bitcoin I’ve been holding the last 6 months into dogecoin via coinbase convert feature which I am aware is a taxable event seen as “taking profits”. I’ve been holding for about a month, I have not sold my doge and don’t plan to anytime soon. My long term goal is to convert it back into btc soon and let it ride for a few years. Just wanted to get one thing straight that google hasn’t been able to answer. When I report my income do I still have to pay the capital gains taxes even though I haven’t converted it into fiat and withdrawn to my bank account? I honestly think it’s BS if I have to pay capital gains on a conversion I made even if I sold the btc and bought the doge, I didn’t take any of the profit in cash so why should I have to pay out of my salary? Which honestly will not cover the taxes as I have made a very considerable amount in fiat (1x salary) and I don’t have the liquid cash to cover the cap gains taxes.

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