How Is the Initial Purchase of Cryptocurrency for a Margin Account Treated for Tax?
The initial purchase of cryptocurrency, even for a margin account, is treated as a property acquisition for tax purposes. It establishes the cost basis and the start of the holding period for the cryptocurrency itself.
The act of depositing it into a margin account is generally not a taxable event. However, any subsequent sale or trade of that crypto to meet margin calls or close the position will be a taxable event (capital gain/loss).
