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RE: Steem and Taxes ... don't get F**ked by the IRS

in #steemit5 years ago

@financialcritic i'm sure you've answer this numerous times so if there is link in a previous convo or website please direct me.

You mentioned that trading between crypto currencies would be deemed a taxable event. Just thinking aloud..the closest example in the stock market I can think of is an all-stock M&A deal where investors in Company A receive the acquisition price equivalent stock of Company B (there is no movement into a fiat currency).

In the eyes of the investor there is no capital disposal and from what I can find (sorry the only accounting law firms ones were Canadian) online the IRS does not see that as a taxable event:

http://finance.zacks.com/tax-stocks-exchanged-through-merger-acquisition-11818.html

Applying that to crypto I could only see a taxable event when the disposable involves fiat currency.

Look forward to your response.

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That is a really good point! I hadn't considered that, but it does look like it's a non taxable event. I could theoretically trade between bitcoin and Steem and even Tether and it's not a taxable event until I go to USD.

Yeah, my whole 'tax plan' was just noting my initial deposits of fiat currency used to purchase crypto and then in the years where I sold crypto back to usd i would record that as a capital gain/loss.

Will revisit the topic when tax season rolls around next year but appreciate you bringing this topic up and flagging some potential pitfalls.

Really like your content, just joined recently and came across you "Top 6 Mistakes Minnows (New Steemit Users) Make" when I was trying to wrap my head around Steemit!

I was keeping track of every transaction...although I'm not sure it's needed anymore.

Hi @financialcritic I've Published a post about you, check it out if you can, thanks.

32 Best Steemit Bloggers Of The Day To Follow 27th July 2017

https://steemit.com/steemit/@jzeek/32-best-steemit-blogger-of-the-day-to-follow-27th-july-2017

Thanks, will check it out!

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