Are cryptocurrencies taxed?

Are cryptocurrencies taxed?

only if you cash out

what is tax?

Capital gains tax only

Yes, every transaction when you buy between alt-coins and btc is taxed on top of what what you gain.

when you sell at a gain. like any other asset.

Yes, keep track of everything you buy and sell with fiat.

As far as trading crypto for a different crypto, idk.

Only if you let the government catch your gainz

Don't let gubmint catch your gainz.

Not in the us that i know of

>Not in the us that i know of
Good luck with that

In good ol' NZ no taxes what so ever, though the govnerment doesn't really take much notice of crypto currencies, yet. I don't think it's very popular here at the moment, never see it on news or articles.

Yes, but how is that calculated? The USD value of the purchased asset is the same as the USD value of the sold asset. When you trade back to fiat, it's a complete wash.

Only if you're stupid enough to not know how to evade taxes

Except when you trade back to fiat and turn a profit. Then you are taxed on that profit.

Yes, the conversion to fiat. I was talking crypto to crypto.

on every transaction yes

What about in jurisdiction's where gambling isn't taxed? Couldn't you just say the sum of your coins increased through gambling, rather than the value increasing?

is weed legal?

Yes

This user is right. The IRS said this.

so what you are saying is, don't buy bitcoin to trade altcoins? What if I bought ETH directly from coinbase?

No there still taxed because ETH, BTC and all altcoins are all cryptocurrency which are treated as a property and not as an actual currency.

he's fucking with you, there's only taxes if you cash out...

Short-term capital gains are taxed at the same top-tier rate as your regular income.

Long-term capital gains on most items are taxed at either 0% (for 10% and 15% tax brackets), 15% (for 25% through 35% tax brackets), or 20% (for the 39.6% tax bracket) in 2017.

Short-term capital gains = held for a year or less
Long-term capital gains = held for over a year


Trump & many republicans want to lower or keep capital gains at the same level. Hopefully they get lowered.

>Are cryptocurrencies taxed?
yes

>Yes, every transaction when you buy between alt-coins and btc is taxed on top of what what you gain.
this user is correct for what people SHOULD be doing

>Yes, but how is that calculated? The USD value of the purchased asset is the same as the USD value of the sold asset. When you trade back to fiat, it's a complete wash.
to report anything to the IRS, you need the acquired date to determine short/long, number of shares, and cost basis, so this is how it would look
>LOT 1--jan 1st (acquired date) - buy 1 bitcoin (# of shares) for $100 (cost basis)
>LOT 2--jan 1st (new sell date for LOT1 + new acquired date for LOT2) - sell 1 bitcoin for 10 ethereum (# of shares) for $10 each (new cost basis for LOT2)
you are then taxed for the gain or loss for each lot. if the transactions happen immediately and the price doesn't move you are correct, you claim a $0 gain/loss. if LOT2 was jan 2nd and BTC was $110, you'd need to report a $10 short term gain - or $90 then a $10 short term loss.

>he's fucking with you, there's only taxes if you cash out...
the problem here is you would need to prove alt-coin transactions as like-kind exchanges, which *most likely* will not fly with the IRS and cryptos

>No there still taxed because ETH, BTC and all altcoins are all cryptocurrency which are treated as a property and not as an actual currency.
this almost means wash sale rules don't apply

my question to you all - how are you reporting transactions fees? as sales?

to clarify, you need to be tracking USD/fiat price at every coin/coin and coin/fiat transaction in a "consistent manner" per the IRS rules (but it's not specified how).

also:
>this also* means wash sale rules don't apply (because that rule is only for securities)

the only thing I haven't figured out yet is what to report for the tiny blockchain/transaction fees