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> IANAL, I'm not a tax expert, but I believe you can deduct losses when converting to/from fiat currency (US dollars). Which is where taxation would take effect
by garmaine 7y ago
> IANAL, I'm not a tax expert, but I believe you can deduct losses when converting to/from fiat currency (US dollars). Which is where taxation would take effect.
You are flat out wrong. You are taxed on any income or transaction, no matter the currency used.
- tracker1 7y agoIIRC, you don't pay capital gains/taxes while sitting on one share of stock that you haven't exchanged yet. When you trade it, that's when you get taxed.
- sbov 7y agoThat's when you buy it. I'm not an accountant, but AFAIK if someone gave you stock for performing a service you would pay taxes on it at that point in time. Then if you sold it you would pay taxes on the difference in value. I think the key might be that the IRS is viewing bitcoin as a payment for the service of mining.