(I'm in the US)
Hey guys, just a quick question regarding long-term capital gains taxes for cashing out Bitcoin.
I'm planning to DCA into Bitcoin and hold onto it for at least 5-10 years, maybe even more. However, when researching tax implications for cashing out BTC I found out that holding BTC for over a year requires less capital gains taxes paid.
However, if I'm dollar-cost averaging, will each specific purchase need to be held for over a year to avoid short-term capital gains or does that not apply?
For example, if I buy 0.1 BTC right now and hold onto it, buy another 0.1 BTC in three years and cash out the next day, will I have to pay short-term capital gains taxes on the latter purchase or does everything fall under long-term capital gains?
Sorry if this was super hard to understand. It's been a long day. Thank you in advance!
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