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While it was deemed to be treated as property, IRS never gave guidance on ability to treat it as like kind transaction. Accountants have been asking for this cl

While it was deemed to be treated as property, IRS never gave guidance on ability to treat it as like kind transaction. Accountants have been asking for this clarification for years. SEC treating ICO as a security. IRS needs to come out with more guidance, but doing taxes is going to be a pain with crypto to crypto. Not looking for trouble with IRS, especially when gains were plentiful for so many this year. Pay your taxes, you don’t want to be the example the IRS makes. PR not going to look good for people in crypto, “majority of crypto owners refusing to pay taxes”.

antitax 9y ago
Taxes are paid by less intelligent people to more intelligent ones. That is the reason why YOU must pay them.
1053r 9y ago
What? The IRS gave guidance for this in 2014! It's right there under item Q-6 in Notice 2014-21. https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf "Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?" "A-6: Yes." (quote continues, but there you go). I have no idea how folks came to the conclusion that 1031 swaps were ever acceptable, but it's always been clear that the IRS did not think they were. TL;DR Don't get your tax advice from Reddit. (Or random commenters on hacker news, for that matter.)
- gojomo 9y ago
  That would have been so much clearer if they'd just written "…upon an exchange of virtual currency for other property, including other virtual currency." But they didn't, and thus the 'other' can easily be read as "other kind of property" – leaving 'virtual currency' to 'virtual currency' unaddressed.
jandrese 9y ago
There is a segment of the crypto-currency community who got into it explicitly to avoid paying taxes and to be away from government oversight. They aren't going to be happy with the exchanges playing nice with the IRS.

antitax 9y ago

Taxes are paid by less intelligent people to more intelligent ones. That is the reason why YOU must pay them.

1053r 9y ago

What? The IRS gave guidance for this in 2014! It's right there under item Q-6 in Notice 2014-21. https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf "Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?" "A-6: Yes." (quote continues, but there you go). I have no idea how folks came to the conclusion that 1031 swaps were ever acceptable, but it's always been clear that the IRS did not think they were. TL;DR Don't get your tax advice from Reddit. (Or random commenters on hacker news, for that matter.)

gojomo 9y ago
That would have been so much clearer if they'd just written "…upon an exchange of virtual currency for other property, including other virtual currency." But they didn't, and thus the 'other' can easily be read as "other kind of property" – leaving 'virtual currency' to 'virtual currency' unaddressed.

jandrese 9y ago

There is a segment of the crypto-currency community who got into it explicitly to avoid paying taxes and to be away from government oversight. They aren't going to be happy with the exchanges playing nice with the IRS.