Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP Plan

Post by an_account » Thu, Dec 21, 2017, 4:24 PM UTC

jclardy wrote: post #16

stakecounter wrote: post #11

Is the cost basis calculated by the US dollar value of each at the time of the exchange? Or based on the exchange rate of the two currencies? Scenario: 1. I buy 1 ETH for 1 USD when rates are 1 ETH/USD, 2 ETH/BTC. 2. I trade 1 ETH for 1 BTC when rates are 2 ETH/USD, 1 ETH/BTC. Option 1: I’ve incurred a loss, because the sale is reported as first a sale of ETH for USD, then a purchase of BTC at whatever the cost basis…

Yeah, this is the confusing part for me - moving from BTC to other crypto. Also if it is based on USD price at the time of the transaction...then which one? Coinbase rates can be far different from other exchanges.

Post by [deleted] » Thu, Dec 21, 2017, 4:27 PM UTC

squaredpants wrote: post #9

toomuchtodo wrote: post #8

Earlier quoted context omitted.

Know Your Customer, requiring exchanges to provide the necessary data, etc.

What about decentralised exchanges?

Post by tomschlick » Thu, Dec 21, 2017, 4:29 PM UTC

toomuchtodo wrote: post #18

squaredpants wrote: post #9

Earlier quoted context omitted.

What about decentralised exchanges?

Tax evasion rarely works out long term.

Post by jermaustin1 » Thu, Dec 21, 2017, 4:29 PM UTC

nonbel wrote: post #22

jermaustin1 wrote: post #19

Earlier quoted context omitted.

It is the exact same as exchanging mutual funds at your brokerage. Like an exchange I did just this morning: $10,000 VHDYX -> $10,000 VFIAX. It creates two orders a sell and a buy. I'm taxed capital gains on the $10k sale (about $600 gain) and the buy has nothing to do with it, until I sell it in 5 years.

There is no sale for dollars involved in the OP's scenario. Is there an actual sell in your scenario or is it "virtual"?

Post by cinquemb » Thu, Dec 21, 2017, 4:35 PM UTC

tomschlick wrote: post #25

toomuchtodo wrote: post #18

Earlier quoted context omitted.

Tax evasion rarely works out long term.

Yup. Remember, it wasn't the police who got Capone, it was the IRS.