Post
Topic
Board Exchanges
Re: Will Bittrex provide tax documents at the end of the year, or am I responsible?
by
erk
on 19/10/2017, 23:46:57 UTC

This is really bad advice. Capital gains taxes are calculated based on your annual net trading gains (in addition to investments you may have liquidated during the tax year). You think stock traders can avoid paying taxes just by leaving gains in their E-trade account rather than withdrawing it? To the IRS, every transaction is potentially taxable. Withdrawals are not taxable.

Nice rant, but right out of touch with reality. Bittrex doesn't trade fiat, and stock traders don't trade one stock for another without passing though fiat. They are completely different. In order to calculate capital gain or loss, you need a fiat value. A better analogy would be casino chips, profit of loss is calculated when you turn them back into fiat, the rest of the time they are an internal token of the casino. Not unlike the IOU token WEX and Bitfinex issued this year, their credit is useless anywhere else but inside the exchange.

When you Etrade a stock, ownership changes hands, that is not the case with a crypto exchange.
When I trade LTC for BTC on Bittrex, ownership of coins doesn't change hands, therefore there has been no trade off the assets, just an IOU in the exchanges's database. Only when the public key on the blockchain changes is the ownership transferred, and this happens at the time of deposit and withdrawal on Bittrex.