3 ms·
Coinbase to Send Data from 13,000 Users to the IRS
- sharemywin 9y agoCarrying Gains and Losses Forward If capital losses exceed capital gains, the filer is entitled to claim a deduction against the loss in the amount of $3,000 or the total net loss, whichever is less. When a net capital loss exceeds the $3,000 limit, it can be carried forward to future years. In the following year, the loss carried forward would first be used to offset potential capital gains. If capital losses still exceed capital gains, the filer can claim up to $3,000 as a loss and continue doing so year over year until the net loss amount is reduced to zero. Capital gains, however, cannot be carried forward. Once an asset is sold for more than its original purchase price and a gain is realized, the gain must be declared in full on that year's taxes. For this reason, those looking to sell off assets should do so strategically to minimize any potential tax burden that might ensue. https://www.fidelity.com/mymoney/how-do-capital-gains-and-losses-carry-over https://www.fidelity.com/mymoney/how-do-capital-gains-and-lo...
- kerng 9y agoThis seems relevant if you sell crypto on Coinbase/GDAX. Selling (even if you buy some other crypto right away/trade) is the taxable event and it's just normal to pay taxes on that in the USA. Aren't financial institutions required anyway to send that info (especially above 10K) to the IRS? What makes this special? Or is there something else I'm missing? What if someone parks cash in USD at Coinbase. Does Coinbase pay you interest? If so, again taxable and coinbase should send a 1099. Would all seem pretty straight forward...