Hello! I hope everyone is doing well!
Need some help. Trying to buy a miner with crypto
If I’m holding a stable coin in my MetaMask wallet(or any crypto wallet) then transfer to coinbase to complete a transaction for a miner on a miner website that allows me to use coinbase commerce. But I never bought or sold anything on coinbase. I’m just using coinbase as a through tunnel from MetaMask to coinbase to miner website. Is that a taxable event?
Really new at all of this so I apologize if I’m taking crazy lol but if there’s anyway on the internet that’s knows it’s here,
Transferring a token from one wallet to another wallet isn’t a taxable event. Using crypto for payment can be taxable event if your basis in the coin is less than the coin’s market value at the time you use it for a purchase (or a tax loss if the basis is higher)
But stable coins essentially are pegged to the dollar (or another fiat). So while they can fluctuate very slightly here or there (particularly when markets are spiking/crashing), your profit (or loss) when used for payment should be negligible.
Bear in mind once you get your rig and start hashing, mined crypto currently is taxable in the US. So keep good records if this applies.