For all you US citizens, just what the fuck are you people doing about coin2coin exchanges.
I'm aware of the short vs. long term capital gains tax, but from coin2coin it seems like there hasn't been a statement about the IRS on whether or not it's covered under section 1031?
Store it all in monero
I can create my own coin and trade to it anonymously on Etherdelta without anyone ever knowing. I've also received lots of crypto as payments from people and I also accept Monero.
Good luck figuring all that shit out IRS.
i dont know man ill worry about it when it happens. its not fucking rocket science to figure this out if you are above 100 IQ.
giving up U.S citizenship and moving somewhere else like New Zealand
According to my tax man, we're going LIFO, and any trades are considered 1031 exchanges, like kind, until cash is pulled out. I will be raped by the tax man, but I believe it's not until when I pull out actual cash in my bank account. *Side note: I have not bought anything in crypto, otherwise would claim dollar value on tax returns.
>According to my tax man, we're going LIFO
this sounds like pure faggotry from the IRS. is it? or am i being a noob?
>we're going LIFO
why? if you have had btc for over a year wouldnt you claim that was what was used to buy other coins?
FIFO
crypto is not like kind
>crypto is not like kind
i..is it true, user?
yes. irs considers each trade a taxable event. crypto is property, not currency. irs sees trades as eth>usd usd>btc, not eth>btc
y'all are fucked if you aren't reporting capital gains on trades. trust me, tax man is coming.
...
hm this is just a thought but maybe we should ban the IRS?
Where did you get this info? Just curious.
I'm going to be talking to a tax attorney soon-ish to get the low down, but I'm always open to another user's braindump
i aint doin shit besides current vs initial. they'll get what they get and if they don't like it they can audit me and figure out what i owe. fuck them for trying to make it complicated
the funniest thing is the Taxman can easily analyze blockchain to see where your money is going
Fuck this gay earth, why did I have to be born an American?
the IRS is going to destroy crypto. 2018 is the year where they start to collect backtaxes and investigate the whales who profited in the early days. the coinbase thing is to prove that fraud is rampant and people are evading and underreporting. after that they'll get everyone. it'll be amnesty deals like the swiss banks. i'd say you should report everything this year to try and legitimize crypto but it's too late. this party is over by 2019.
I’m sorry but do you have tax man? Is like kind. Can confirm.
Also, what about cross chains atomic swaps with something like lightning? Does that still count as
btc>usd usd>ltc
for instance?
I ain't reporting shit.
Your gay.
it's literally in the IRS statement from 2014. they are extremely vague about like kind exchanges but my tax attorney has advised me to be conservative here. i have a lot of money in this and i'm going to get eaten alive by capital gains taxes. i'm not underreporting anything, let them take the 30% and fuck off. after this i'll hold long term and see where things are at in 2019, but i don't have much hope for this market anymore.
>Make bazillions
>Use second account on different computer to create ridiculously low buy order on ED
>Sell to that with first account
>Claim losses on your taxes
>Give coins back to first account
Wooooooow so haaaarrrrrrdd
no it isn't. it's not considered "real property". it's considered intangible property. while they haven't been completely clear, it is assumed this means it is not a like kind exchange.
You might want to read this
en.m.wikipedia.org
"There aren’t direct two-party like-kind exchanges between trader A and B through the exchange. Trader A doesn’t meet or know trader B, and each executes their trades directly with the exchange.
There also isn’t a multi-party like-kind exchange. Taxpayer A trades on the exchange, and the exchange does not meet the Section 1031 requirement for acting as a QI in a multi-party like-kind exchange. The exchange does not complete any of the required paperwork as a QI, and the trades occur in nanoseconds, not over months.
The IRS would likely consider the exchange a dealer. Section 1031 prohibits dealers from participating in direct two-party like-kind exchanges since dealers hold inventory in a trade or business, not capital assets. The IRS would likely treat the exchange as a disqualified person in a multi-party like-kind exchange.
It might be possible for cryptocurrency holder A to execute a direct two-party exchange with holder B if he knows him and executes the transaction off-exchange. However, the IRS might not consider Bitcoin like-kind property with Ethereum."
pretty much sums up why this isn't considered like kind. seriously, report your fucking trades.
If it’s a verified account with your name on it, it’s a like kind event. Sorry man, pony up and take the tax hit. google.com
we are going to pump a shitcoin this saturday get in while u still can
discord.gg
wut? the article you linked even says it's not like kind. are you retarded? the tax hit comes from it NOT being like kind. if it was like kind you could just report your net gain or loss and ignore crypto to crypto trades.
They should have taught me how to do taxes in high school, so no.
Sorry, meant to say LIFO, not FIFO. But either way, the initial buy in vs what I'm at now is going to F me. & it will be long term gain, +1yr. * I did claim a loss in 15, sold and re-bought, so I have established a price.
Just like what happened with online poker. Oh wait it didnt.
Hypothetically, if someone just reported the profit they cashed out and paid capital gains on that, without recording/reporting every single trade, what would be the consequence for that?