Do you pay capital gains tax when you convert between currencies in ?
Let's say I buy $1 of Bitcoin, which appreciates to $5. Then I convert it to $5 of Etherum.
Does that count as selling my bitcoin? Or do I pay capital gains only when I sell the Etherum for cash?
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I am not a lawyer or tax accountant, but I believe the answer is "any exchange creates taxable capital gains in US dollars" according to the IRS. There are weird exceptions like trades in tax-protected accounts (IRAs, etc.).