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Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

altcoinreport.co

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Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#11

Post by jandrese »

AltcoinReport wrote: post #2

Due to the massive amount of capital gains taxes owed on crypto, Tom Lee believes there will be a sell off in order to pay these taxes. Following tax day, he believes Bitcoin will find footing again.

Won't the capital gains only be owned when people try to convert to fiat currency in the first place? If you're leaving your stuff in cryptocoin form I don't think you would pay capital gains.

So this is only a problem for the people cashing out, and if they've cashed out then they should have the cash to cover their tax bill.

And this assumes they didn't cash out to the Cayman Islands account. Probably not a lot of capital gains will be reported to the IRS this year for cryptocoin related profits.

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#13

Post by personlurking »

Someone used a throwaway account to share their recent personal experience on this matter at /personalfinance, titled "I just discovered that I owe the IRS $50k that I don't have, because I traded in cryptos."

Original: https://www.reddit.com/r/personalfinance/comments/84huks/i_j...

Update: https://www.reddit.com/r/personalfinance/comments/89ipyu/upd...

They removed the story inside their update, but Google cached it: https://i.imgur.com/0DspXDr.png

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#14

Post by gzu »

jandrese wrote: post #11
AltcoinReport wrote: post #2

Due to the massive amount of capital gains taxes owed on crypto, Tom Lee believes there will be a sell off in order to pay these taxes. Following tax day, he believes Bitcoin will find footing again.

Won't the capital gains only be owned when people try to convert to fiat currency in the first place? If you're leaving your stuff in cryptocoin form I don't think you would pay capital gains. So this is only a problem for the people cashing out, and if they've cashed out then they should have the cash to cover their tax bill. And this assumes they didn't cash out to the Cayman Islands account. Probably not a lot of…

Crypto gains are taxed on each exchange whether that be btc-eth or btc-fiat or [altcoin]-[altcoin]. That’s what’s so bad because some didn’t withdraw fiat to pay for gains.

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#15

Post by ska »

jandrese wrote: post #11
AltcoinReport wrote: post #2

Due to the massive amount of capital gains taxes owed on crypto, Tom Lee believes there will be a sell off in order to pay these taxes. Following tax day, he believes Bitcoin will find footing again.

Won't the capital gains only be owned when people try to convert to fiat currency in the first place? If you're leaving your stuff in cryptocoin form I don't think you would pay capital gains. So this is only a problem for the people cashing out, and if they've cashed out then they should have the cash to cover their tax bill. And this assumes they didn't cash out to the Cayman Islands account. Probably not a lot of…

"If you're leaving your stuff in cryptocoin form I don't think you would pay capital gains."

Note this is only true if you hold onto particular coins. If you exchange some bitcoin for etherium, for example, you will realize capital gains or losses. This has nothing specifically to do with cryptocoins, the same thing would happen to you if you bough silver, say, and then exchanged it for gold.

Your latter point is straightforward tax evasion and will be caught or not in much the same ways as other forms.

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#16

Post by chrisa »

cvaidya1986 wrote: post #9

Why would people wait till Tax day to sell in order to pay taxes?

Many people probably don't know how much taxes they have to pay until right before tax day (because they haven't done their taxes yet). Especially with something like cryptocurrency, where actually calculating your true tax can be really complicated (if you have a lot of trades, are trading alt coins for alt coins, etc).

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#17

Post by csomar »

abbieseide wrote: post #3
AltcoinReport wrote: post #2

Due to the massive amount of capital gains taxes owed on crypto, Tom Lee believes there will be a sell off in order to pay these taxes. Following tax day, he believes Bitcoin will find footing again.

A decrease of $20 for every $1 pulled from the market seems a little steep...

That would drop the whole crypto market cap to $50bn from the current $250bn.

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#19

Post by lsc »

jandrese wrote: post #11
AltcoinReport wrote: post #2

Due to the massive amount of capital gains taxes owed on crypto, Tom Lee believes there will be a sell off in order to pay these taxes. Following tax day, he believes Bitcoin will find footing again.

Won't the capital gains only be owned when people try to convert to fiat currency in the first place? If you're leaving your stuff in cryptocoin form I don't think you would pay capital gains. So this is only a problem for the people cashing out, and if they've cashed out then they should have the cash to cover their tax bill. And this assumes they didn't cash out to the Cayman Islands account. Probably not a lot of…

https://www.bizfilings.com/toolkit/research-topics/managing-...

What I'm saying is that trading btc for ltc is barter- and it is taxible.

Re: Tom Lee Predicts Cyrptocurrency Market Outflow to Fiat Currency Before Tax Day

#20

Post by charlesdm »

neaden wrote: post #18
cvaidya1986 wrote: post #9

Why would people wait till Tax day to sell in order to pay taxes?

Presumably if you think BC is going to go continually up you want to wait until the last minute to sell.

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