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> Definitely still a potentially very profitable asset class but the taxation method is brutal, versus a system like stocks where you buy the stock and when you
by xyzzyz 6y ago
> Definitely still a potentially very profitable asset class but the taxation method is brutal, versus a system like stocks where you buy the stock and when you sell it for dollars that's the taxable event.
I don't see the difference. When you buy GOOG stock, and want to trade it for AMZN stock, you sell it, and buy AMZN with proceeds. This generates taxable event. Sounds like exactly same situation as you describe.
- wonderwonder 6y agoIt would be like if you could trade GOOG for AMZN without having to sell GOOG first, just an exchange. They tax that swap. Versus taxing you only when you convert GOOG or AMZN to dollars. It like if I have a printer that I don't want anymore and you have a leaf blower and we trade. That transaction is taxed in cryptocurrencies.
- xyzzyz 6y agoYes, and IRS also taxes the swap of GOOG for AMZN. See[1]: > Amount realized. The amount you realize from a sale or exchange is the total of all the money you receive plus the fair market value (defined below) of all property or services you receive. The rules are exactly the same for stocks as for cryptocurrencies. There is no difference. [1] - https://www.irs.gov/publications/p544#en_US_2019_publink100072271 https://www.irs.gov/publications/p544#en_US_2019_publink1000...