Capital gains for cashing out skins/virtual loot through Bitskins?
I’d bought a bunch of rare csgo skins in 2017 that I sold in 2021 for an insane profit on bitskins. Cashing out wasn’t straightforward because I had to convert to crypto, move them to my Coinbase and then withdraw as USD. I’m curious how much tax do I owe for this. #crypto #tax TC - 2 M4A4 howls per month.
Any time a transaction occurred in your story, a taxable event occured, more or less. Each conversion of crypto to crypto or crypto to cash or vice versa is a separate event, as is the sale of the skins for crypto. Lay it all out step by step. In general though, you probably want to seek professional help for these not-yet-mainstream cases.
Tax once long term capital gains from 2017 => 2021. Short term cap gains from when you received crypto till when you sold it.
1 Kidney should do it