Crypto taxes

Apple Mfnp15
Feb 13, 2018 23 Comments

If I have bought ripple with bitcoins or done something similar to that like buy ether with Bitcoin on Binance/Kraken etc, is that considered as a taxable event? If so how do I report it in my taxes?

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TOP 23 Comments
  • Adobe / Sales Adobel
    What do you do if you owe taxes on unrealized gains in 2017 but then the market crashed in January and don’t have enough to cash out to pay taxes
    Feb 13, 2018 11
    • Microsoft / Eng 20% raise
      Cap gains shouldn’t be taxed. Neither should regular income. Consumption should be taxed.
      Feb 14, 2018
    • Amazon Moving?
      Cute. Another Philip DeFranco here thinking he understands regressive taxes.
      Feb 14, 2018
    • Facebook banmiester
      I'm for consumption tax if it's tiered. Basic groceries near zero, luxury at 40-50% tax if not higher. Tax luxury like cigarettes.

      I wouldn't mind taxes, but govt wastes so much money it's hard to justify giving them money.
      Feb 14, 2018
    • Amazon aWxr07
      How is the IRS determining the "value" to determine unrealized gains? An unregulated crypto exchange? I can understand the taxation once you convert to fiat, but the values for these coins come from random exchanges, and for some coins, with not enough volume to even realize the gains if you wanted to.
      Feb 15, 2018
    • Amazon Moving?
      All of the pricing of crypto is tied to Fiat. Every exchange calculates fiat value as part of the conversion, so it’s pretty easy.
      Feb 15, 2018
  • Bloomberg iaYM02
    All cryptocurrencies are treated as property. No special treatment of altcoins.
    Feb 13, 2018 0
  • LinkedIn showmemone
    Can someone explain why unrealized crypto gains are taxable?
    Feb 27, 2018 3
    • LinkedIn showmemone
      Specifically if I bought coins in 2017 and did not sell or convert in 2017, do I need to pay any taxes?
      Feb 27, 2018
    • Bloomberg iaYM02
      If did not trade them at all - then no taxes due
      Feb 28, 2018
    • New numtu
      Crypto to crypto trades are taxable events and gains or losses must be reported. If you buy a coin with fiat and hold, no gains or losses need to be reported until you execute a taxable event (trade for another crypto, move back to fiat, or purchase something)
      Mar 1, 2018
  • Bloomberg iaYM02
    Unfortunately you still owe taxes for 2017. But in 2018 you will have a loss that will offset future profits
    Feb 13, 2018 1
    • Adobe / Sales Adobel
      Well if things don’t go up, the loss in 2018 is a deduction. So even with a USD profit, you could easily be at an overall loss
      Feb 13, 2018
  • New zgBx36
    Then if i exchange eth for an altcoin on binance that would be taxable so how would i calculate that?
    Mar 18, 2018 0
  • Lyft sUPA43
    I'm afraid everything said above is wrong (for US taxpayers). altcoins are treated as collectibles, not capital assets.
    So your question is equivalent to whether trading an old necklace for a marble statue is a taxable event. this is something tax advisors know how to handle. the tax rate is 30% though :(
    Feb 13, 2018 0
  • Bloomberg iaYM02
    Yes it is
    Feb 13, 2018 0
  • Cisco SJxy25
    bitcoin.tax
    Feb 13, 2018 0