Crypto Taxes In 2018 Are Scary
The new taxes for crypto coming in 2018 are kind of scary and it could mean that you will have to pay a lot more.
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In the past the tax understanding for most crypto users in the US was to pay capital gains tax when you cashed out. Whenever you sold your coin to cash. That looks to all be changing.
It looks like now that we have to record in USD all our trades and pay capital gains on those as well. How is that even possible? Do they really expect us to record and claim each trade we make? If I go from SBD to Ethereum to Stellar Lumens, to BTC in a span of a week, would I have to record each trade's P&L in USD? Well... yes.
This guy on YouTube sums it up pretty well.
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Fortune magazine has a good write up about what they call "The Closing Of The Bitcoin Loophole."
It is still going to be up to you to claim it on your taxes, but there is no doubt that the government is looking close at crypto right now. Just like the rest of us, they want their piece of the pie.
For me, I'm going to slow down the trades and just accumulate coins for the next couple of months.I plan on paying all the taxes that I'm supposed to. I'm going to limit the cash outs and just wait and see what happens.
I'm no financial advisor, so don't look to me for financial advice. I'm just a guy talking about taxes and crypto.
What are your thoughts? Let me know in the comments below.
Thanks for reading.
You shouldn't have to pay tax unless you cash out back into fiat. This is going to be disaster. I don't think the IRS truly understands crypto and this isn't going to go as smooth as they think
YES WHAT YOU JUST SAID. it'll be a fckng disaster plane & simple
That is really scary, I wonder what the laws are for other countries? Thanks for sharing this.
no problem. I appreciate you reading.
Why should there be tax?😭😭
I guess for roads and stuff. lol
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Hope this helps!
Wait, what?? taxes? Just wonder how they gonna tax cryptocurrencies!!
On every trade we make. Which is crazy. You got a new follower for stopping in.
I think the tax laws will be amended to fit cryptocurrencies. It will simply become impossible to track all this if too much tax suppression pushes this underground (Monero, Sumokoin). The big question is whether the current tax code is indeed too repressive to push this underground already.
Good points. It is an evolving thing and I find it very interesting. I appreciate the reply and insight. Thanks
Oh, this is so bad for the US. The IRA will have so much paperwork they are going to regret this. Everyone should fill in their spreadsheets with data about every trade they do. I'm sure someone will make a program for this. :D
Adding Tax on sales is more understandable, when you trade out from a cryptocurrency to a fiat currency, an item, or a service.
when tax come, it's mean more less we received