Finally hooked into Crypto, made my first purchase, so much easier than i thought!!!!!

[Mr. Blonde]

T

Dude ur there!

Thanks, was reading back through some posts by you and others. I'll feel better once I do a transaction. Now there are so many options. I got to figure out a new vendor. Before I just used whoever accepted PayPal lol

 

[Gr33dyOctopus]

T

Thanks, was reading back through some posts by you and others. I'll feel better once I do a transaction. Now there are so many options. I got to figure out a new vendor. Before I just used whoever accepted PayPal lol

Me too buddy! Your iptions are limitless now. I wish I would have been able to get some of those christmas specials, but better late than never!

 

[tubby]

I was able to do it with venmo for whatever reason. Now I have usdc/sol. Just got to figure out how to purchase now...

Did you also purchase a small amount of SOL itself? If not you'll want to do that ($1 worth is probably fine), since when you're moving USDC around on the Solana network between wallets you have to pay a transaction fee. And that transaction fee is paid in SOL crypto itself.

 

[Mr. Blonde]

Did you also purchase a small amount of SOL itself? If not you'll want to do that ($1 worth is probably fine), since when you're moving USDC around on the Solana network between wallets you have to pay a transaction fee. And that transaction fee is paid in SOL crypto itself.

Now I did, thanks!

 

[Crumplestiltskin]

So, if I purchase something using crypto through Exodus, do I need to declare that purchase on my taxes? Or just the fact I purchased X amount of crypto?

 

[tubby]

So, if I purchase something using crypto through Exodus, do I need to declare that purchase on my taxes? Or just the fact I purchased X amount of crypto?

Here's an easier way to think about it:

If you buy some crypto for $100 and later sell it for $105, you would report the transaction once the sale occurs (just like stocks and mutual funds) and in that example realize a $5 gain. That part I think is straightforward and easy to understand for anyone who has dealt with capital gains before.

If you instead buy some crypto for $100 and then later use it to buy $105 worth of widgets, the IRS creates a fiction of sorts. They pretend that you first sold the crypto for $105 and then used the $105 to buy your widgets. Obviously that's not what really happened, but if you pretend that's what happened then IRS crypto rules will start to make sense.