I joined the masses this year into crypto world, from BTC to alt coins to ICOs. Its been non-stop learning ever since. As the year wraps up, I now am curious about tax implications.
From what I read everywhere, IRS has stated any gains within crypto will be taxed as an asset, where there will be capital gains tax on earnings.
So I have few questions that everyone may have encountered. I am not looking for financial advice.
Here are few questions:
1. If you purchased primary BTC from coinbase, then transfer them to exchange to trade alt coins. Now I assume, buying alt coin would not have any tax, as its just transfer of coin type. But what if you sell alt coins for BTC on that exchange? Is that point considered capital gain?
2. If you move your coins (BTC/ETH/LTC) to foreign exchange, and cash out in those exchange, the transfer to US bank account. Would that be considered capital gain?
3. If I purchase ICO tokens with ETH then sell tokens for ETH, and continue this cycle. Then at end, I buy goods/services using ETH, should that be taxed as capital gains?