/biz/ - Business & Finance

>>3984632
>if your crypto is just sitting on an exchange do you have to pay taxes? you don't have to pay until you convert it to USD right?

I wish. No, they're considered property in the United States, so if you trade your property for property such as an altcoin trade, that triggers a tax event between the fairmarket value of the trade and your cost basis for the original asset. The only way to defer paying this tax is to get the trade cleared as a like-kind exchange (or to not report it). But the IRS REFUSES to clarify if alt-coins are like-kind and I've heard of no one that actually successfully reported as like-kind.

>Let's say you buy 100 bitcoin at $1000
>Then the price rises to $6000.
>Your portfolio is worth $600,000, your cost basis is $100,000
>You owe no taxes yet.
>Then you trade the 100 bitcoins for 10,000 shitecoins at .1 btc each.
>The "fair market value" of this trade is $600,000.
>You now owe taxes on the $500,000 capital gain AS IF you sold btc for cash then used that cash to but shitecoin.
>You now fucking owe money even if you cashed out 0 dollars.
>At the end of the year you'd have to sell a huge portion of your portfolio, calculate any taxes for selling then, use the left over amount to pay taxes again for the capital gain when you bought shitecoin.

Yes this is how cucked the taxes are for US crypto traders and no one realizes. Enter a few mock trades at bitcoin.tax, which was created by a professional accountant. What I'm saying is true.

>>2260740
Look at this old cunt. Can't the deep web do something about her?