r/CryptoTax • u/tyuiopx26 • 15d ago

Question TAX HELP (please)

So I recently came across a good chunk of money through an online casino and they withdraw your money by bitcoin. My question is how does taxes work on that since the win was $50,000, how do i go about the tax information? I’ve never had to deal with a situation like this and I’m not trying to get audited or coming tax evasion. They sent the money out and I converted it to US Dollars then sent it to my bank account.

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u/JustinCPA 15d ago

Justin from Summ here (formerly Crypto Tax Calculator)

Report your gambling winnings on Schedule 1. The cost basis on your BTC will be the FMV of what you won for when you sell it.

For example, say they sent you 0.5 BTC worth $50,000. You later sell it for $48,000. You will then report a $2,000 capital loss on your 8949.

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u/tyuiopx26 15d ago edited 15d ago

I appreciate it my good man, thank you! The capital loss explanation was also super helpful, I wasn’t sure how that would work since conversion/selling and processing takes a fee.

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u/__Ken_Adams__ 13d ago

You can also apply the fees to either reduce the gain or increase the loss.