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Is it accurate to treat crypto facilities as equity brokers, or more like foreign currency exchanges? (Forex probably have their own reporting requirements, the
by adolph 5y ago
Is it accurate to treat crypto facilities as equity brokers, or more like foreign currency exchanges? (Forex probably have their own reporting requirements, the question is about analogous service, not the reporting/privacy part.)
- pembrook 5y agoYou probably don't want crypto transactions to be taxed like forex ones--unless you enjoy paying capital gains taxes before you've even sold: https://www.investopedia.com/terms/s/section-1256-contract.asp https://www.investopedia.com/terms/s/section-1256-contract.a...
- dcolkitt 5y agoYou're confused. Section 1256 applies to futures, not forex. Spot forex positions are taxed as ordinary capital gains under Section 988. Under very specific conditions a high-volume spot forex trader who never takes deliver may elect to be taxed under 1256, but that's completely optional. https://greentradertax.com/a-case-for-retail-forex-traders-using-section-1256g/ https://greentradertax.com/a-case-for-retail-forex-traders-u...