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Are there any laws in this space that would give the IRS authority to do anything about crypto earnings/losses?
by artificialLimbs 4y ago
Are there any laws in this space that would give the IRS authority to do anything about crypto earnings/losses?
- idontwantthis 4y agoYou owe the IRS taxes for everything, including profits from crime.
- deleted 4y ago[deleted]
- britneybitch 4y agoExisting tax code already covered crypto to a large extent. If you buy a boat for $100k and sell it for $150k, you've always had to pay taxes on the difference. Crypto works the same way.
- panarky 4y agoUnlike with digital assets, you don't have to tell the IRS you acquired a boat unless you sell it and owe tax.
- woodruffw 4y agoFor the purposes of taxation, cryptocurrencies are considered securities. You have to pay capital gains taxes on them (or, as appropriate, deduct your losses).
- yieldcrv 4y agocryptocurrencies are considered property not securities. The IRS has been very clear on this for nearly 10 years. I think you are conflating capital gains with securities, but there are in fact many asset classes besides securities.
- woodruffw 4y agoSorry, you're right[1]. I was confusing the IRS with the SEC. [1]: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions https://www.irs.gov/individuals/international-taxpayers/freq...
- a9h74j 4y agoAre actual traditional currency holdings still taxed in the US on unrealized gains and losses each year? The rules in question would seem to clarify that crytos are not mere currencies.
- yieldcrv 4y agodigital assets are not taxed on unrealized gains and losses, unless by realize you wish that meant “to dollars in my bank account”, asset to asset trades are taxed on their notional dollar amounts and nobody is conflating the currency aspect of crypto, that misnomer is so last decade. if someone starts a conversation with that word, I’m not going to correct them until a reply like yours tries to read too deep into it
- Finnucane 4y agoIf you bought or sold a thing for profit, or were paid in a thing, or won a thing in a contest, they can tax you on it. Even if it's illegal.
- pkilgore 4y agoWell, the definition of income in the USA includes [1]: > income means all income from whatever source derived Then it only proceeds to except certain things. So the better question, from the perspective of tax laws are: "are there any laws in this space that takes away the IRS's very clear authority to treat crypto earnings/losses like any other income" [1] https://www.law.cornell.edu/uscode/text/26/61 https://www.law.cornell.edu/uscode/text/26/61
- yieldcrv 4y agoyes, always were income is income capital gains is capital gains dividends are dividends the asset type that any of this was received in was never a factor, the nature of the transaction was the only factor its nice that the crypto space is maturing on this matter now