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RE: 1040 Tax Form Crypto Questions
I am trying to follow your logic with the IRS.
The changes will be on the tax forms brought out in 2020 for Calendar year 2019.
The question is going to pertain to ownership in 2019, any point. Hence selling in December or February is not going to matter. It does not apply to holdings at time of filing since it is always in arrears.
If Bitcoin gets pumped in December and than dumps in January, then all of a sudden everyone owes taxes on value that don't exist. This is exactly what happened in 2017/2018 and a lot of people blamed poor price action in April 2018 for this reason.
If your Bitcoin is worth a million dollars in December and is then worth 100k in April, you still owe taxes on a million dollars.
Taxes are not owed on assets unless sold.
Plus it is only on the gains so if someone paid $500K for the $1M BTC, the gain is only $500K. If the BTC was held more than a year, it is capital gains, less it is considered earned income (different tax rates).