99% of the time I put the cart back where it should go, I was referring to Duff acting like he is better than everyone else because he never breaks a rule, just making an analogy...anyway
New IRS rules could nail you on crypto capital gains.
- Thread starter Duff Miver
- Start date
99% of the time I put the cart back where it should go, I was referring to Duff acting like he is better than everyone else because he never breaks a rule, just making an analogy...anyway
Let me get this straight.
You use an analogy to cut a guy down, and then you say you do it 99% of the time?
Ok, butterbean.
You're wrong BBC. If you buy and sell anything, any commodity, a house, a car, apiece of property, a stock or bond...anything...and if you make a profit on that transaction, you must report it as a capital gain. Cryptocurrency included.
But don't believe me. Ask any certified accountant.
OTOH, if you buy and sell cryptocurrency for a loss, you can deduct the loss.
- Sep 1, 2012
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- Sep 1, 2012
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I consulted with a few tax professionals today, two of which specialize in cryptocurrencies.
The law is indeed vague, but it appears cryptocurrencies should be regarded as property. This does mean that you have to pay short and long term gains.
In terms of trades, it is probably best to assume that these are not like-kind exchanges so each time you make a trade you are converting to USD and establish a new cost basis with the token you bought. That means if you had 1 BTC you bought at $500 and then later you traded the then $10000 in value BTC for $crapcoin you will pay gains on the 9500 at that time. In 2017 you can use any BTC you have for the sell, but in 2018 you have to do first in first out (if this tax plan becomes law).
In addition, if you buy anything with your BTC that is considered a sale.
This may sound confusing as shit, but you can go to www.bitcoin.tax and enter in the CSVs from coinbase and the exchanges and it will calculate all this for you. It is a really robust application.
Another thing, any forked coins should be regarded as income. You can enter those in bitcoin.tax as well. The costs bases for BCH is calculated at roughly 270 per coin on Aug 1. That is the day you should record for the income.
I do think its worth paying the taxes on this because if you make any real money off this they will sniff it out. If you spend the (not much time) to enter this in, you will also have neatly organized cost bases for everything you own.
The law is indeed vague, but it appears cryptocurrencies should be regarded as property. This does mean that you have to pay short and long term gains.
In terms of trades, it is probably best to assume that these are not like-kind exchanges so each time you make a trade you are converting to USD and establish a new cost basis with the token you bought. That means if you had 1 BTC you bought at $500 and then later you traded the then $10000 in value BTC for $crapcoin you will pay gains on the 9500 at that time. In 2017 you can use any BTC you have for the sell, but in 2018 you have to do first in first out (if this tax plan becomes law).
In addition, if you buy anything with your BTC that is considered a sale.
This may sound confusing as shit, but you can go to www.bitcoin.tax and enter in the CSVs from coinbase and the exchanges and it will calculate all this for you. It is a really robust application.
Another thing, any forked coins should be regarded as income. You can enter those in bitcoin.tax as well. The costs bases for BCH is calculated at roughly 270 per coin on Aug 1. That is the day you should record for the income.
I do think its worth paying the taxes on this because if you make any real money off this they will sniff it out. If you spend the (not much time) to enter this in, you will also have neatly organized cost bases for everything you own.
Yep. First in, last out.
Hold for a year 15%, short term 20%-39%.
We are all paying taxes this year.
FIFO got scrapped from the bill.
Anyone that has any questions on taxes can ask Jack for my number. Except for hedgehog.
Anyone that has any questions on taxes can ask Jack for my number. Except for hedgehog.
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