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

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

#161

Post by SAI_Peregrinus »

notheguyouthink wrote: post #109
tw04 wrote: post #87

Earlier quoted context omitted.

What good is the coin if you can't ever spend it? Sure, you can hid it away somewhere the government can't find, and just sit on it... but then what? When you eventually want to spend it on SOMETHING , unless you're going completely black market, there's going to be a record. When the guy making $50k/year suddenly buys a $2.5 million house, the government is going to ask you where that money came from.

I never said anything about not spending it. Clearly though if you bring money over to USD, it's quite visible and taxable. To be honest, I don't know what your point is. If I make 50k/y and buy a 2.5m house with cash, the gov is going to ask me where it came from too. What's this have to do with my comment questioning the governments ability to track anonymous coins? Anonymous coins _(if working properly)_ are effec…

They track cash via audits. The same thing will happen with anonymous coins. So if your apparent income (tracked purchases) is larger than your declared income you can expect an audit, no matter where the extra money came from.

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

#162

Post by drvdevd »

KirinDave wrote: post #51

Wash sale rules still apply (as has been noted elsewhere). But it's pretty likely this government will start to aim for that as well. The only policy lens by which this current congress's bill makes sense is on that "rewards existing businesses moving into new markets" as opposed to "new businesses competing with existing via new markets." And while I'm not a fan of the bill or its primary authors, I'm simply not abl…

This fits quite nicely with having less “net neutrality” doesn’t it?

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

#163

Post by s73ver_ »

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.

The safest and simplest is probably the rate of the exchange you're using.

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

#164

Post by arcticbull »

jMyles wrote: post #155
arcticbull wrote: post #141

Earlier quoted context omitted.

I agree, I picked a single one, though I could also have pointed at the UK, Ireland, Norway, Sweden, Finland, Iceland, Denmark, Germany, France, the Netherlands, Switzerland and so on. Curious what you mean by bringing it to a close, though.

I mean deprecating the system of state sovereignty in its entirety. I believe this to be the inevitable effect of the internet.

Interesting, I think your point about equalization and homogeneity is a likely outcome. I think state sovereignty is interesting when viewed as hundreds of simultaneous experiments in different ways of self-organization. Since it seems nobody has quite perfected it yet (?) I think we're not quite ready yet, though the vision is an enticing one.

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

#165

Post by jermaustin1 »

notyourday wrote: post #131
jermaustin1 wrote: post #27

Earlier quoted context omitted.

There is no "real" sell on Vanguard to go from one fund to another, but regulations require them to mark it as a sale, and to denote the cost basis of the sale.

It also will be marked-to-market

Interesting, I have never heard that term. I'm pretty uneducated in finance. I just have done great on my Vanguard Mutual Funds, and I keep them going.

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

#166

Post by dnautics »

s73ver_ wrote: post #163
jclardy wrote: post #16

Earlier quoted context omitted.

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.

The safest and simplest is probably the rate of the exchange you're using.

Some exchanges don't have usd. Even for those that do, it takes about 30-90 minutes to typically move ~100k in assets from one currency to another, double that if you're going between two altcoins via Bitcoin. During that time the effective usd exchange can have nontrivial swings.

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

#167

Post by sowbug »

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"?

Bartering is taxable as well. This was the case even before computers were invented. See, e.g., https://www.irs.gov/newsroom/bartering-produces-taxable-inco...

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

#168

Post by s73ver_ »

jMyles wrote: post #113
orthecreedence wrote: post #111

Earlier quoted context omitted.

The internet has child porn, so let's shut that down as well??

I don't think this is a reasonble analogy. I don't advance or enable child porn merely by using the internet. By contrast, I do advance and enable senseless state violence by paying taxes. It is a source of personal shame.

I believe it's exactly as reasonable as yours.

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

#169

Post by s73ver_ »

throwaway30yo wrote: post #118
arcticbull wrote: post #110

Earlier quoted context omitted.

Spoken like someone who's never lived under a functioning socialized government like, say, Canada.

Spoken like someone not from Canada. When the government was funding all of the residential schools, you had no option but to pay the government or risk being tortured.

"you had no option but to pay the government or risk being tortured"

Also known as just "following the law." You could also say you had no choice but to not rape someone or risk being tortured.

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

#170

Post by [deleted] »

shawabawa3 wrote: post #64
nawtacawp wrote: post #43

Earlier quoted context omitted.

I purchased $300 BTC the other day on CB and they wanted a $30 transaction fee to withdraw the BTC off their site. I wonder if this fee can also be considered part of the purchase?

Just FYI, coinbase is paired with GDAX, their exchange. You can transfer your bitcoin to GDAX and withdraw it from there for free (they will eat the bitcoin fees)

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