In Germany, you can deposit crypto currency on a wallet and have your profit paid out completely tax-free after a year. The one-year period is reset within one year if you exchange for another crypto currency or make a new deposit on the same wallet.
1 year after 1 year
Is this the same in America, especially in California?
No not even close. You have to pay capital gains on crypto gains / loss. Also this is a forum for avax governance and technical discussion not crypto taxes.
Sorry but I see this answer as an attack. Don’t get me wrong DarkGhosty but I was basically referring to AVAX tokens. AVAX are tokens, i.e. generic crypto currencies that represent a certain value.
How much percentage of profit from tokens such as AVAX tax do you have to pay for AVAX tokens?
Like 40 %…
0% to 50%+. There is no exact percentage to quote because US tax depends on the cost basis of the crypto you sold, the time you held it, your other income, the number of tax deductions you can claim, whether you are married, what state you live in, what city you live in, and whatever Congress decides to do tomorrow. That said, you can get a more precise answer by going to http://bitcoin.tax which will calculate your US federal tax for any crypto. From a tax perspective, crypto is treated like stock shares, and there are several online calculators that will help you with quick estimates, including state estimates. If you move here, hire a CPA to take care or your tax filings because it’s a complicated system.
I’m still holding my token. I have not yet transferred the tokens to my “real money” bank account in Germany. Only when the money is in my account will I fill out a tax return. I live in Germany and assume that I have to pay taxes in the USA as well. Have I understood that correctly?
You were in California? If you are a German national, I would be very surprised if you owed any US tax for a capital gain on an asset you acquired in the US, but sold after you returned to Germany.
Typically you owe tax after you sell and realize a capital gain in whatever jurisdiction you are in.
Talk to an accountant in your jurisdiction.
Your claim is not true, AVAX has never been a token, it has directly started as a native coin since mainnet start.
AVAX is a coin, not a token.
True if you define coin vs token that way, but irrelevant for tax purposes
Yes, you are right here
thank you in fact it is a coin: https://coinmarketcap.com/currencies/avalanche/