Tax implications for crypto

Discussion of all things crypto and blockchain.
silverpv
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Re: Tax implications for crypto

Postby silverpv » Wed Apr 04, 2018

Chaboo wrote:
Long John wrote:
silverpv wrote:Wanted to share this with you guys .... https://cointracker.io

Cointracker has a very useful FAQ on crypto taxes. https://www.cointracker.io/faq#section-tax

This part covers the most basic question most people have: What is taxable? (The one in bold corrects what I had thought I understood, that any transfer between wallets is a taxable event.)

Generally speaking, these are considered taxable events:
•Selling cryptocurrency for fiat currency (i.e. USD, EUR, JPY, etc.)
•Trading cryptocurrency for other cryptocurrency
•Using cryptocurrency to buy a good or service
•Receiving cryptocurrency as a result of a fork or from mining

On the other hand, the following are generally not considered taxable events:
•Buying cryptocurrency with fiat currency
•Donating cryptocurrency to a tax-exempt organization
•Gifting cryptocurrency to anyone (if the gift is sufficiently large it may trigger a gift tax)
Transferring cryptocurrency from one wallet that you own to another wallet that you own



I finally started looking at this closely and found that cointracker counted each time I sent to my wallet as a sale instead of a transfer. I went back and manually changed them as a transfer. My gains were cut in half as a result. :shock: I figured it'd add up, but ...HALF..... That's huge and well worth the few minutes to take a look at.


Very good point.. Thanks for the note. Too late for me, I didn't transfer much but I'm sure it did cost me some. I'll look for next year.

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SilverDoge
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Re: Tax implications for crypto

Postby SilverDoge » Thu Apr 05, 2018

Taken from this article: https://www.coindesk.com/crazy-cruel-us-tax-crypto-currency/

The U.S. Commodity Futures Trading Commission is eyeing virtual currency as a commodity. The SEC is beginning to treat certain tokens as a security. The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has stated that certain activities involving convertible virtual currency constitute money transmission. The IRS treats convertible virtual currency as property.

Commodity? Security? Currency? Property?

Four different, inconsistent categories for the same thing.
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silverpv
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Re: Tax implications for crypto

Postby silverpv » Thu Apr 05, 2018

SilverDoge wrote:Taken from this article: https://www.coindesk.com/crazy-cruel-us-tax-crypto-currency/

The U.S. Commodity Futures Trading Commission is eyeing virtual currency as a commodity. The SEC is beginning to treat certain tokens as a security. The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has stated that certain activities involving convertible virtual currency constitute money transmission. The IRS treats convertible virtual currency as property.

Commodity? Security? Currency? Property?

Four different, inconsistent categories for the same thing.


All depends on who's getting paid.. Everyone wants their cut.

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texmex66
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Re: Tax implications for crypto

Postby texmex66 » Thu Apr 05, 2018


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tdtwedt
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Re: Tax implications for crypto

Postby tdtwedt » Fri Apr 06, 2018

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There are more ways than one to skin a cat.

Chaboo
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Re: Tax implications for crypto

Postby Chaboo » Thu Apr 12, 2018

Anyone use TurboTax and claim crypto? I'm having trouble marrying my info, what I see here and actually feeling comfortable with finishing my taxes. I'm SO close but could use a little hand HODLing. :D
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SilverDoge
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Re: Tax implications for crypto

Postby SilverDoge » Tue Apr 17, 2018

Some excellent ideas at the end of this article for future crypto taxes:

https://www.coindesk.com/irs-treat-crypto-new-asset-class/
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silverbender
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Re: Tax implications for crypto

Postby silverbender » Tue Apr 17, 2018

SilverDoge wrote:Some excellent ideas at the end of this article for future crypto taxes:

https://www.coindesk.com/irs-treat-crypto-new-asset-class/


Very good beginning,currently it is discouraging paying taxes unless you are in a straight forward situation.
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Brick's
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Re: Tax implications for crypto

Postby Brick's » Tue Apr 17, 2018

Alas, while they are good they remain ideas.
"You pompously call your selves Republicans and Democrats. There is no Republican Party. There is no Democratic Party. There are no Republicans or Democrats in this house. You are Lick-Spittlers and panderers, the creatures of the plutocracy".
- Jack London

"It is a government of corporations, by corporations, and for corporations."
- Rutherford B. Hayes, 19th President


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