Hey guys,
Quick question for ya. I’m in the US and whenever I move my Bitcoin between my accounts, like from Coinbase to my wallet, do I have to pay taxes on that? I'm worried since I've got some gains already and don’t wanna deal with short-term gains taxes. Also, does Coinbase give out 1099s for moves between accounts?
If you're just transferring Bitcoin within the same currency, like moving from Coinbase to your wallet, it shouldn't be taxable. Seems like they just shift the crypto around without selling it, so no tax worries there. But maybe keep a record? Just in case you need to prove it’s all within your own accounts.
Right, transferring isn’t really selling or earning anything. Like, if you had to pay taxes every time you switched brokers, that would just be ridiculous, right?
Got it, but what about moving it to a hardware wallet? Coinbase probably doesn’t track that I’m sending it to myself. Do they only care about transactions that change BTC to USD, or do they monitor transfers to wallets too?
Honestly, it doesn't matter if you're using a hardware, desktop, or even an app wallet. As long as you’re not swapping it for something else, no sale is happening when you withdraw it from Coinbase.
@OP, I think you're worrying a bit. Coinbase doesn’t track that closely for personal transfers. They focus more on the gross trading volume when they send a 1099-K to the IRS. Deposits and transfers don’t count. But remember, they’re changing their reporting soon.
It’s true, as long as it’s Bitcoin for Bitcoin transactions, you’re good. It’s like sending money to a friend; it’s not a trade, it’s just moving funds.
But why are you still confused about it?
Fees are a reality, guys. Every time you make a move, you’ll get hit with a fee based on your gas price settings. Regulations might pop up in some areas, but that’s a whole different ballgame.