It seems I’ve been under a misconception for a long time. Always thought that spending the ETN (or other crypto) as opposed to selling it wouldn’t be taxable. I’m going to have to take a while to process this and decide my best way forward.
I must say it seems totally wrong, as it’s taxing a sale twice, as there is already a sales tax on the transaction that is paid by the seller and passed on to the buyer as part of the price.
It helped me wrap my brain around it to remember that I am only being taxed on the gain.
Important to remember here too is that in the US at least losses can offset that gain.
I also am looking fondly at Portugal. That is an entirely different topic.
Yeah. Quoting myself. Tacky.
From what I saw in the UK the first 12k in gains are tax free depending on income.
In the US short term is taxed as income. Long term (over year) has more favorable treatment. If living only on such gains it works out that the first $52k is tax free at the federal level. my state would charge me 4.4% on 40k of that. After that the rate is still lower than comparable income rates.
So it can still be pretty ok.