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The IRS wants their cut of your profits. So, if you buy $10 US worth of euros, spend half of them, the dollar tanks, and you exchange the remaining half back fo
by corysama 5y ago
The IRS wants their cut of your profits. So, if you buy $10 US worth of euros, spend half of them, the dollar tanks, and you exchange the remaining half back for $6 US, then you profited by $1 US and the IRS wants part of that one dollar.
- Raidion 5y agoWhat happens if you buy Bitcoin, it goes up, and you buy something directly with Bitcoin? Do you get taxed on those "gains?". Or only if the proceeds end up back in USD?
- deleted 5y ago[deleted]
- smeej 5y agoYes, the IRS expects you to pay taxes on the delta between the value of the coin when you bought it and the value of the good you exchanged it for.