Taxes on old wallet / and reinvestment

Hi there, recently i found an old wallet and would like to pay out in cash. What will happen with taxes now?

Also second question, what happens if i use my bitcoins to reinvest like say some host and rent miner offers? What will happen from there on, when I pay out later. Isn’t it the same as mining before? I thought for example in investing in compass mining for example.

I used at that time (2017) Gpu’s for mining. But i just have the wallet, nothing else more. Recipe of GPUs probably, but nothing more. Used a pool, i don’t remember.

Thanks for answering,

You should owe taxes on any mined cryptocurrencies at the value when it was mined. This would apply whether you mine it at your house or with a mining hosting company. Any taxes owed on converting the crypto to USD would be dependent on the increase in value and where that would fall with long term capital gains taxes. Any increase in value would essentially just add to your taxable income. If you have a taxable income of $50k and sale your crypto for a profit of $5k, your taxable income would be $55k.

You’re going to be taxed the same if you reinvest based on dollar value, unless the transaction is less than the value of the crypto at time of mining. You would need records to prove this and if no taxes were paid initially it could make for a challenging process.