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It 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 conve
by wonderwonder 6y ago
It 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...