MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

The Biggest Cost People Miss When Buying Crypto

6 Nov 2025 · 1 min

Watch on YouTube

0:54

In this video, Mark Kohler explains a frequently overlooked expense when dealing with cryptocurrency: taxes. He outlines how the U.S. tax code treats crypto as property, meaning every disposition—whether a sale, conversion, or crypto‑to‑crypto swap—is a taxable event. Holding crypto for more than 12 months triggers long‑term capital‑gain rates (approximately 20% federal plus the 3.8% Net Investment Income Tax and applicable state tax, often totaling 30‑35%). Holding for less than 12 months results in ordinary‑income rates that can reach 37% plus state tax. Kohler emphasizes that the IRS does not require conversion to U.S. dollars for a tax liability; any trade or transfer is taxable, making tax planning essential for both long‑term holders and active traders.

Chapters

Let's talk about the problem with selling crypto the traditional way. When you sell crypto assets held for more than 12 months it's taxed as long term capital gain first. Now that's a 20% federal rate plus 3.8% what's known as the net investment income tax or Affordable Cares Act, ACA or Obamacare plus any state income tax and that adds up quick. Very well could be over 30 to 35% in some states. Sell sooner than that you're hit with ordinary income tax rates as high as 37% then add the state tax to that. So whether a long term holder or an active trader, every sale triggers tax even crypto to crypto transfers or swaps. This is because the IRS recognizes crypto as property not as currency. So whether you sell it, convert it, trade it, not even moving it back to US Dollars, it's a taxable event. Essentially the IRS doesn't care that you ever cash out to USD. If you trade it it's taxable.