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IANAL or a tax accountant, but believe you have the right general idea except in most cases for tax (and some other financial) purposes the onus is on you to de
by ska 7y ago
IANAL or a tax accountant, but believe you have the right general idea except in most cases for tax (and some other financial) purposes the onus is on you to demonstrated that you did not structure transactions, not on them to demonstrate that you did.
You are right that it is all a bit fuzzy because real life use is complicated.
Exceptions on reporting like this are meant to make "normal life" transactions less burdensome. For example in general you have to report gains/losses made on foreign exchange, but typically countries have an allowance so that you don't have to calculate this every time you go on vacation.
The proposed amendment would add virtual "currency" transactions to that.
- mattferderer 7y agoI'm 100% behind this being passed as I can't see digital currencies being useful as a US citizen with the current reporting requirements. At the same time, I also think this is an incredibly difficult policy to get right. I think structuring could become a common thing among those who have done well with digital currencies to either avoid taxes or purely out of convenience & without ill intent.