The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Taxes on Cryptocurrency questions (U.S.A.)

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Mr.Brandtastic

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Sep 27, 2017
128
389
190
Parents' House
Yes I know, it's that time again. Tax season. Time to open your wallet and give Uncle Sam his cut for "keeping you safe" or whatever mystical bs they come up with. They want to vacuum every single nickel and dime that they are owned.

Now I know that many of us have crypto gains and I want to ask questions to serious people who either are accountants, tax lawyers, or people with a lot of experience in the field.

I know that crypto counts as property and over one year counts as long-term capital gains.

But what if I transferred one alt-currency to another alt-currency and realized gains this year? Do I pay taxes on the gains or only when I exchange it back into fiat? I've heard so many conflicting sides and I wanted a clear answer. I assume the former.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

LeoistheSun

Silver Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Oct 3, 2017
427
637
275
Honolulu
You could... use btc-e (different name now) and wire to a offshore account...? Or sell the BTC in person...for cash...? Idk.

Some things I've thought about.
 

CareCPA

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 2, 2017
920
3,236
760
32
Pennsylvania
The technical answer is: whenever you trade from one currency to another (whether from fiat to alt, or alt to alt), you must recognize a gain or loss on that transaction. Depending on your level of activity, this could be tricky (to say the least). The IRS of course has not put out too much guidance on this.

How you ultimately end up reporting it is a discussion between you and whomever signs your return, and the level of risk the two of you are comfortable with.
 

CareCPA

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 2, 2017
920
3,236
760
32
Pennsylvania
You could... use btc-e (different name now) and wire to a offshore account...? Or sell the BTC in person...for cash...? Idk.

Some things I've thought about.
This is called tax evasion. I'd be careful about posting such thoughts publicly.
 

mike24601

Consumption Bear
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Apr 8, 2017
195
514
248
Illinois
I plan to report it as short or long term capital gains and be done with it. My crypto philosophy is buy and hold, so it should be easy when the time comes. One sale, one time gain. I can see a lot of people getting reamed in the future...LOTS of people day trading crypto that possible don't even know their gains/losses for the year. Don't be that guy.
 

Sponsored Offers

  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
I am going to test this for a month and see how it goes... If anyone wants to join using Crypto...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
If you are in IDEA mode, text "IDEA" to the above number. If you are in LAUNCH/START mode, text...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
I have a long weekend off work.. bought your "Start a Freelance Business: Take Back Your...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
If there’s one thread I see repeated over and over again on the forum, it goes like this: “I...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Thanks for clearing that up. What do you recommend for those who are still in the process of...



Forum Sponsor

Over 100 Fastlane Students
More Details...

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom