Quarterly taxes and long term investment

[user17524159637]

Hi. I have a couple of questions:

1. I am a 1099er and pay quarterly taxes. Do I need to pay quarterly taxes on cryptocurrency sales sold in that quarter? 

2. How do I go about figuring out long-term vs short-term when my crypto has been moved from exchange to storage to exchange? Say, for example, I purchased 500 coins on August 15, 2024, and 500 on September 1, 2024...and then sold 500 coins on August 1, 2025, and 500 on August 20, 2025...can I count the 500 sold on August 20 as long-term holdings that were originally purchased August 15 or do I need to count it as coins orignially purchased September 1, since I'd sold 500 earlier? 

[vithalanin]

I would recommend you pay quarterly taxes on your crypto gains.
Crypto sales are accounted for in First in first out basis. So the date you bought the first one is the date the used for the sale of the first sold. In your case, August 15 2024 is when you bought the first 500 coins and August 1 is the first date you sold any coins and so they are short term. The August 20 2025 sale date will take the purchase date of September 2024. So both will be treated as short term sales. This will all be reflected in the new crypto reporting Form 1099-DA. 
If you had chosen to have the election of First in last out with your crypto platform, then only will your sales show as long term. This election had to be made by December 31, 2024. Now this cannot be changed.