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.

 

[Crumplestiltskin]

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.

That helps break it down nicely, thank you!