<prompt> Human: Ive earned about 100,000 dollars in bitcoin. I havent cashed out yet and I have no clue how taxes work towards this stuff. Ive tried reading up about it and it seems like I pay property tax? Its so confusing. I live in California, I do not have a job other than this. Ill supply any other information you need.Assistant: You pay capital gains tax. If the assetscoins were held for longer than a year you will pay long-term gains tax which is based on your income. If the coins were held for less than a year then you will pay short term tax at whatever the rates are.Human: Do these taxes take in effect when I sell them? or just for holding them? ie: I pay short term tax now and then long term tax next year? Am I in the lowest income bracket because I dont have a job? or is my capital gains counted towards my income?Assistant: Just when you sell them. The exchange will provide you with the proper tax form come tax season.Human: This makes a lot more sense now. Thank you!  <response>: No, it is not a guarantee that the exchange will send you the proper forms. In fact, they probably wont. Make sure youre paying the proper amount to avoid future problems. There are tons of resources for this over in rbitcoin 