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RE: Is Transfering Funds From Coin To Coin A "Taxable Event".....???
The cryptos are largely denominated in Bitcoins, since it takes bitcoins to buy them. If you trade a stock in USD in your Fidelity account for instance, and you get back in after selling it, then your cost basis is adjusted so that it is considered as never being out of the position. I don't see why cryptos would be any different. The taxable event should work like this. Invest dollars into BTC, buy other cryptos still in BTC. When you sell your position in BTC to turn it back into dollars, bam, pay your taxes...
Thank you for sharing...
I agree but that would limit the IRS, essentially cutting them out of the millions upon Millions of "transactions". they feel they have the right to tax said transaction.. I foresee a huge legal battle and possibly on the more extreme end eventually blocking of certain exchanges with the FCC trying to "defreedomize" (not a word but it fit) the internet..
I like the new word:)
If it can work for Fidelity without legal battles, then I don't see why not for our individual trading. Besides, I don't thinks it's possible for them to track all transactions. Unless they put that burden onto the exchanges. But the exchanges would like do the same as Fidelity.