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I think the tax treatment of cryptocurrency is nonsensical if one views and attempts to use it as a currency rather than an investment. There is no exclusion o
by freeAgent 7y ago
I think the tax treatment of cryptocurrency is nonsensical if one views and attempts to use it as a currency rather than an investment. There is no exclusion of small transactions from capital gains reporting requirements like there is for foreign fiat currencies. That means that actual currency users must track and report cost basis and gains on every single transaction, no matter how small, in order to remain in compliance. This tax treatment is overly burdensome and stifles legal cryptocurrency usage and adoption in the US.
- wglb 7y agoKeep in mind that if you swap houses that you bought as an investment, there is still the possibility of a tax liability. Barter is not excluded from taxation.
- freeAgent 7y agoThe first $250-500k of capital gains on houses is tax-free when you sell your house. I would argue that the IRS should treat cryptocurrency like other foreign currencies where the first $200 of capital gains is not taxed: https://www.irs.gov/publications/p525#en_US_2018_publink1000229538 https://www.irs.gov/publications/p525#en_US_2018_publink1000... That would just put cryptocurrency on similar footing as any other currency.
- Hydraulix989 7y agoIt would be considered a 1031 Like-Kind exchange though.