The Question
Taxes on Crypto Withdrawal?Taxes on Crypto Withdrawal?
Do I have to pay taxes to withdraw my money from the platform to put in my wallet?
Hello,
Generally speaking, whenever you have earned income, whether from wages, selling an investment for a gain (stock, house, crypto), gambling winnings, selling an antique painting for a gain, or selling a car for a gain, then you owe taxes on it.
If you take a dollar bill out of your current wallet and put it in a new wallet you got for your birthday, you have transferred the asset, but not sold it.
So, if your question is whether you are subject to taxes if you move bitcoin from your Coinbase account to a cold wallet on a hard drive, then the simple answer is no. However, if you keep some of it, that’s a different story.
If you need to discuss your crypto situation further, whether it is about taxes on gains and ways to offset them, or understanding how much crypto should be allocated in your portfolio, please don’t hesitate to contact me. In that case, I offer project-based financial planning, where we can focus solely on this specific subject on a one-off basis.
Signing Off,
CERTIFIED FINANCIAL PLANNER® practitioner
BlackBird Finance
*This information is for educational purposes and doesn’t warrant as advice. Consider consulting a licensed professional on this matter.
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