I cannot give tax or financial advice. However, I can provide some general information about blockchains. Would this help?

If you bought Bitcoins in January and their value doubled in December, your gain would be based on the difference between the purchase price and the sale price.

Let’s use an example to illustrate this. Let’s say you bought 100 Bitcoins in January at $10,000 each, for a total of $1,000,000. If your value doubles to $20,000 by December, your gain would be:

Sale Price – Purchase Price = $20,000 – $1,000,000 = – $999,000

In this case, you would not pay any capital gains tax because you sold the Bitcoins for less than you paid for them. However, if you had held the Bitcoins for a whole year and their value had doubled, your earnings would have been different.

If you sold the Bitcoins in January, you would owe capital gains tax on the $999,000 gain. The tax rate depends on the period you hold the investment and your tax bracket.

Want more information on cryptocurrency capital gains tax?