Grain of salt disclaimer:(Seek the advice of knowledgeable, lawyer, accountant, physician as I am a pc engineer, musician, and painter I am clearly none of these.)
Additionally learn this https://www.irs.gov/directions/i8949 if you could fill out 8949.
I hope it is a clear rationalization of how capital good points taxes work on the whole.
This is an instance of what I might do usually assuming a FIFO tax remedy:
It is advisable pay tax in your capital good points however you wish to subtract your price foundation from the overall worth you offered for as the idea just isn’t taxed as a achieve. (Observe that if you cannot show the price foundation I imagine your complete sale of 0.49 at 400 can be thought of taxable)
{offered worth – price foundation = capital achieve} that you could pay tax on (earnings tax if underneath 12 months, 15% if it is a long run achieve)
First discover the price foundation.
(0.2*100)+(0.3*120)=20+36=$56 (that is your price foundation)
(I’ll spherical your 0.49 eth as much as 0.50 as a transparent instance with spherical numbers)
Then compute the quantity generated from the sale (I am calling this a offered worth)
0.5*400= $200 (that is your offered worth in my instance equation)
Now discover the capital achieve utilizing the equation under:
offered worth – price foundation = capital achieve
200-56=$144
For long run good points over 12 months it is 15% * your achieve minus the price foundation
144*0.15=$21.50 due in taxes.
For brief time period achieve (held underneath 12 months, as is your case) the achieve is taken into account earnings.
144*your tax charge = what you owe to the IRS as this was a capital achieve. This will get added to your AGI so if in case you have an AGI of 200,000 your AGI is now 200,144 and the 144 will get taxed as unusual earnings.
Regards
