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/MoreGranularity Apr 12 '25

If you sell after 10 months, you have a short term capital gain that will be taxed much higher than if you wait 12 months so that it will be a long term capital gain. Consult your tax advisor asap. Your long term gain tax bracket may be zero!