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RE: Crypto & US Tax - Pt. 3 - Reporting Your Gains... or losses
Would love to hear your opinion on how to NOT pay taxes on crypto currency while not breaking any laws.
Would love to hear your opinion on how to NOT pay taxes on crypto currency while not breaking any laws.
Buy & hold :)
On another note, will be interesting what we do if they finally become considered currencies. Will there be a one-time tax on the FMV? Can it be deferred? Going forward, will it be taxed like forex trading? IRS HELP US OUT HERE!
I didn't think of that. So, what happens if crypto is treated as currency in 2018? Does that imply if we bought in 2016 or 2017 and sell in 2018, we would not have to pay tax? What if you bought in 2016 or 2017, and then move to a country where crypto is a currency...do you have to pay tax during the move?
Great questions, and either I'm not a good enough CPA to understand or this is a scenario that there is no good guidance on.
Possibly if we look back at what happened when the IRS first codified how currency trading works, we could get an inkling as to how it would work.
All I can tell you, is that the IRS will certainly make sure we give our pound of flesh no matter how it works out!
If you or other CPA cracks that code, they would get a lot of business!