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How does tax work? BTC is an asset not a currency. It’s like paying for your credit card with gme stocks
by rdtwo 6y ago
How does tax work? BTC is an asset not a currency. It’s like paying for your credit card with gme stocks
- gnicholas 6y agoThis is an interesting question. You'd need to keep track of cost basis and gain, and specify whether you want to work on a FIFO or LIFO (more likely) basis.
- bdcravens 6y agoThere are online services that will do these calculations for you at tax time, like bitcoin.tax or cryptotrader.tax
- bdcravens 6y agohttps://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 "If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable gain. The taxpayer has a loss if the fair market value of the property received is less than the adjusted basis of the virtual currency."
- rdtwo 6y agoYeah but how many people are going to understand that. And then do that for every transaction. Also it’s interesting to see what happens if you don’t actually own the crypto. Now you have a taxable gain on your visa balance... and what happens on a loss say the next month is it offset? Like if Bitcoin moons in dec and crashes in Jan there is gonna be one hell of a tax Bill