You might think the biggest tax debate about Bitcoin and other cryptocurrencies is about whether you should or shouldn't report it.
The biggest cryptocurrency tax debate still seems to be about 1031, the tax code provision providing for like-kind exchanges.
The Trump tax law passed right around Dec. 2017 made it clear that that swaps of one cryptocurrencies for another are not tax free in 2018.
It is surprising how much debate there is about whether this argument can work for 2017 and prior tax years.
If you are about to file your 2017 tax return, should you claim tax-free treatment for past cryptocurrency transactions? If you are cleaning up your past tax reporting before the IRS finds you, you might have the same issue for 2016 too.
Under the tax code, most swaps are actually taxable, just like a sale for cash.
Despite a profit on each swap, they avoid tax until they sell for cash years later, paying only one tax, ideally as a long-term capital gain.
The majority of exchanges are not simultaneous, but are delayed or "Starker" exchanges - Starker was the name of the man whose tax case made these delayed exchanges famous.
One of the biggest remaining issues is about the mechanics of tax reporting.
He is the author of numerous tax books and frequently writes about taxes for Forbes.com, Tax Notes, and other publications.
Biggest Crypto Tax Debate Is Not What You Think: Expert Take
pubblicato su Apr 22, 2018
by Cointele | pubblicato su Coinage
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