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Where things get bad is when you buy a coin, it goes up 10x, at the beginning of the next tax year you sell and buy some other coin, it goes down to where you b
by colecut 7y ago
Where things get bad is when you buy a coin, it goes up 10x, at the beginning of the next tax year you sell and buy some other coin, it goes down to where you bought the first coin, and now instead of being where you started, you owe 2-4x..
- cortesoft 7y agoYou can carry over capital losses to some extent
- navigatesol 7y agoHow is this any different than selling a house for $1 million, putting that $1 million into a different house, and then the value of that new house falls to $100k? If you sell the second house for $100k, you're on the hook for the tax on the net capital gains.
- colecut 7y agoI guess it's just more likely in crypto, and with crypto your money was a "currency" the whole time, not an asset.
- cortesoft 7y agoThis is the same thing that all currency traders need to deal with, and there are a ton of rules and regulations already in place with how to file taxes for it. https://www.investopedia.com/articles/forex/09/forex-taxation-basics.asp https://www.investopedia.com/articles/forex/09/forex-taxatio...
- refurb 7y agoYou can carryover the loss in future years.