BTC India
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This might be a dumb question but- if I’m purchasing BTC through Coinbase and then sending it to my cold wallet, if the price increases between the buying on the exchange and the sending to cold wallet, will Coinbase see this as a “gain” for tax purposes, even though I’m still holding the BTC? Or does it not count as a sale if it’s just a transfer?
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You only pay tax on proceeds. So if you purchased bitcoin on coinbase and let it sit for a week while the price doubled and then you moved it to your cold storage wallet. there is no sale, there is no proceeds. You wait a year and bring it back to the exchange and convert it to USD. BAM, taxable event whether its profit or loss.
You are transferring to yourself. This event is not taxable.