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 it is advisable to fill out 8949.
I hope it is a clear rationalization of how capital features taxes work basically.
This is an instance of what I might do usually assuming a FIFO tax therapy:
It’s essential to pay tax in your capital features however you wish to subtract your value foundation from the overall worth you bought for as the premise will not be taxed as a acquire. (Notice that if you cannot show the price foundation I consider your complete sale of 0.49 at 400 can be thought-about taxable)
{bought worth – value foundation = capital acquire} that it is advisable to pay tax on (earnings tax if beneath 12 months, 15% if it is a long run acquire)
First discover the price foundation.
(0.2*100)+(0.3*120)=20+36=$56 (that is your value foundation)
(I will 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 bought worth)
0.5*400= $200 (that is your bought worth in my instance equation)
Now discover the capital acquire utilizing the equation under:
bought worth – value foundation = capital acquire
200-56=$144
For long run features over 12 months it is 15% * your acquire minus the price foundation
144*0.15=$21.50 due in taxes.
For brief time period acquire (held beneath 12 months, as is your case) the acquire is taken into account earnings.
144*your tax fee = what you owe to the IRS as this was a capital acquire. This will get added to your AGI so when you’ve got an AGI of 200,000 your AGI is now 200,144 and the 144 will get taxed as strange earnings.
Regards
