I sold some Crypto and made a small profit. I’ve never sold crypto before or had to file taxes to claim capital gains.
I’m going to use the Last In First Out Method, as this allows me to sell the crypto I paid the highest price for and reduce my profit.
A very small portion of what I sold was bought 48 weeks ago so it will be a short term capital gain. The rest I had been holding for 1 year+.
* Total Sale Proceeds $14,827
* Total cost of the portion sold using LIFO $3,531
* $11,295 profit
I sold 0.571 in total.
* 0.555 I had been holding for 1year+
* 0.0153 I had held for less than one year
* 2.68% of what was sold is Short Term Taxable
* 97.32% will be a long term gain therefore Long Term Tax
Can I just multiply those by the profit?
* 2.68% * $11,295 = $302.7 at short term gain
* 97.32% * $11,295 = $10,992 at long term gain
And does turbo tax allow you to file it this way? I use turbo tax every year.