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For the purposes of taxation, cryptocurrencies are considered securities. You have to pay capital gains taxes on them (or, as appropriate, deduct your losses).
by woodruffw 4y ago
For 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