3 ms·
If the IRS wants to tax crypto gains, it must also offer credits for crypto losses. That seems problematic. I would imagine the total reported crypto losses >
by codecamper 6y ago
If the IRS wants to tax crypto gains, it must also offer credits for crypto losses.
That seems problematic. I would imagine the total reported crypto losses > crypto gains.
- codecamper 6y agoAlso, since crypto gains are considered capital gains, then any capital losses you have been accumulating can now be used vs your capital gains. The problem here is.. how the heck can the IRS verify your claim that some gains were capital gains? What if you sell drugs for a living and invest poorly in the stock market. You just send your drug sales gains in as crypto gains, and so you have effectively washed your illegal gains, giving you the benefit of being able to not pay tax on that bc of your capital losses. This system is ripe for abuse.
- greenyoda 6y agoThat's exactly how it works - you pay taxes on net gains (gains minus losses) in a tax year, and if there's a net loss you can deduct and/or carry it over. Why is that problematic? It's exactly how gains/losses work when trading shares of stock. For more information: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions https://www.irs.gov/individuals/international-taxpayers/freq...