RE: Every crypto transaction in 2018 is a taxable event, as per the new tax law
The problem with that:
I buy .5 of a Bitcoin for $7,000
It rises to $7,300 within 3 hours and I want to purchase Ethereum
I swap the .5 BTC for 18.25 ETHfor a total of $7300
Because BTC appreciated by $300 before I executed the swap, that is taxable income.
Without you converting your crypto to fiat, the words without strike through are the only relevant parts.
Btc and eth have an exchange pairing, and this doesn't involve fiat.
Also, what happens if you start spending your crypto? Is every coffee purchase of btc going to be considered a capital event? What if your money never makes it back to fiat?
They can pass all the laws they want, they can run whatever software they want, but when the laws are obsolete before they even get passed then there isn't much point.
I just had a meeting with my CPA. He informed me that every crypto trade, whether crypto to crypto or crypto and fiat is a taxable trade. The author is correct.
so how are they going to go when you start actually spending your crypto? is every $3 coffee that i use VTC to pay for going to be a capital event?
and the fact of the matter is - there is no record of these crypto trades. Once you're in the blockchain you're pretty much untrackable - unless start to expect exchanges to report activities - and then it gets even trickier because you can use almost any exchange in the world.
Yeah, we can think whatever we want, but the politicians/IRS think differently than us and force laws and unjust taxes on us. I can see more people moving out of the US to escape the taxes...
I'm not sure how they will track the amount of tax regarding the purchase of a cup of coffee. This whole thing is a clusterf**k... A money grab by the government so they can squander it on useless crap that we do not need...
I pretty much made a comment like this on a similar post.
For governments to effectively tax crypto, they'd need to throw out their tax laws and start over.
They can try, but they'll fail.