The Case for Cash vs Margin: Crypto Tax Edition
Blog iconLiminal Warmth
Oct 5
Let's pretend that you owe the IRS $10,000 USD in taxes. You can afford to pay this from your bank savings, but you also have $20k in Solana at current prices that has appreciated 100% since you bought it for $10k six months ago. You could sell half to pay taxes but then you’d owe another $2000 in taxes on the $5000 gain (assuming 40% tax rate). You are annoyed by this because your tax burden is already high this year. Plus, you want to hodl on your crypto investment anyway. The problem ...

Liminal Warmth

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