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If you trade 1,000 BTC for 10,000 ETH and never touch fiat, is that a taxable event? That trade on January 12 would have been worth $14 million. If you acquire
by panarky 9y ago
If you trade 1,000 BTC for 10,000 ETH and never touch fiat, is that a taxable event?
That trade on January 12 would have been worth $14 million. If you acquired the BTC years ago, you could have a tax liability of $5 million even though you never gained a single dollar.
Today that ETH is only worth $5 million. You would have to sell all of it to pay your taxes.
- celticninja 9y agoIn some jurisdictions that is a taxable event. However isn't a gain only a gain when it is realised? If I have 10 BTC worth a $1000 and then they are worth $100000, do I need to report a gain if I don't sell them? My assumption is that I only have a taxable gain when I turn it into USD.
- wang_li 9y agoSome dude on reddit sold btc in December for ~$100k profit. Bought random coins in January and lost almost all of it. Is looking at a $30k tax bill. Can’t offset the loss because he crossed a year boundary between the transactions. His annual income was only something like $35k.
- namlem 9y agoYes, in the US that is definitely taxable. Keep in mind you can also write off losses though.