Investors & landlords

@G Kumaran - please re-read @Mike9241 comments as he is spot on.

 

you have to separate in your mind the purchase and sale of assets (Crypto) from loans (margin)

 

1) you have to report the profit or loss of the crypto which is based on the purcahse price and sales price of the asset.  

 

2) the loan (margin) has nothing to do with this; it has no tax implication at all.

 

3) you bought ETHUSD and then sold it.  from your original screen shot, there was a gain of $5,000.  That is the reportable gain... 

 

4) The fact that you had to use the proceeds from that sale to pay off your margin loan is immaterial to the situation,  This second transaction is not reportable on your tax return. 

 

5) and you did retain the crpyto after its sale...but just for the nanosecond as the proceeds were used  to pay down the margin loan.