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drgo / Dr. Bitcoin, MD
npub1fa8…thnd
2024-08-09 00:35:39

drgo on Nostr: I don’t know why I can’t figure this out, but it is it more tax efficient to ...

I don’t know why I can’t figure this out, but it is it more tax efficient to periodically sell all bitcoin and immediately buy it back, pay tax on gains or to wait and never sell until the end of investment lifespan?

Example: if I bought 1 bitcoin at $10,000 and will sell all when bitcoin hits $1,000,000…

Would I pay less tax if I sold all bitcoin at every $10,000 increase in price (and immediately bought back with whatever post tax money I had left) until price hits $1M or just hold all bitcoin until price is $1M? Or is it the same in the end?

Assuming tax rate is always long term rate for high income people (28%).
Author Public Key
npub1fa8c9prxnrlkdtjl48adfsxyaduz8tas075l2n4f6903y9awjmxqanthnd