If you consider a 30% tax rate, selling a bitcoin at $15k to chase an altcoin, if your last tx on that btc was at $10k, you have a $5k profit and roughly $1500 tax burden.
You’ll realize it either way at some point, but my calculus is if it’s worth it before Dec 31 or not.
You’ll realize it either way at some point, but my calculus is if it’s worth it before Dec 31 or not.
If you underperform btc you needlessly speed up the time you owe the tax man by a year. If you overperform, you need to make at least 10% (1500/15000) before it makes sense.
It’s really hard but I’m waiting for a fat pitch. Today looks good but not worth it yet for me.
It’s really hard but I’m waiting for a fat pitch. Today looks good but not worth it yet for me.
Meanwhile, if btc continues upward, each btc becomes much stronger buying power for paying 2020 cap gains that occurred pre-$10k btc. Reducing the % of portfolio I have to take out in January to pay them.
Finally, tax treatment for derivatives is different in the US. So I can still establish altcoin exposure and keep BTC basis thru margin positioning. So I’ll have to settle with that unless the pitch for spot exposure is too good.
I’m not your accountant but if you made good money in Defi and alts and sent a bunch to btc, I’d consider your transactions carefully now. I certainly am.
This also plays into why I believe the btc/alt cycle will shift around the new year. Alts will probably bottom relative to btc earlier but I think they go hyperdrive Jan 1.
This is true alpha but no chart so you’ll ignore it. Then you’ll get your tax bill and lose your mind. If you’re really unlucky, you’ll also have drawn down overall by the time you have to pay and really lose your mind.
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