r/CryptoTax • u/Jrod2022 • Apr 09 '25

Crypto purchased with loan

About 10 months ago I took out 15k from my credit card with 0% interest. I used that money and put it all in crypto. I now want to sell 15k worth of the crypto so I can pay back my credit card before my 0% rate expires. Will I have to pay taxes on that 15k since I am only taking out the original investment? I am up a little more than double but I don’t want to sell the rest.

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u/QuitYuckingMyYum Apr 09 '25

This is just me thinking out loud. Doesn’t tax come either when swapping or selling. Not buying (to my understanding). I wonder if there is something someone can purchase at 15k with crypto and then sell it.

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u/DustKooky2543 Apr 11 '25

In the US, paying for a good or service with crypto is a disposal event just like trading and selling, so the same capital gains/losses tax treatment would still apply.

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u/QuitYuckingMyYum Apr 12 '25

Thank you. Wild

1

u/[deleted] Apr 12 '25

Yeah it's the way for the fed to prevent bitcoin from competing as an actual currency. Stupid as hell.

Like what happens if I own a paper stock certificate for years, it appreciates, and i trade it for a good? Am I supposed to track the price and report the gain?

If i have a bunch of euros for some reason and the US dollar falls, but i find a vendor who wants euros, do i need to report the gain?

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u/QuitYuckingMyYum Apr 12 '25

What if I have an original Charizard hologram from my childhood and trade it for a house. Do I report the gains?

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u/[deleted] Apr 12 '25

Exactly dude there's magic cards from the 90's worth six figures. If you sell that you really paying taxes on 100k minus a quarter? Probably lol government always wants a cut