Quote from: pawanjain on December 18, 2017, 02:47:17 PM

Quote from: n911 on December 17, 2017, 07:25:33 PM

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.

Yes it is true. The amount of money we make in the particular time will be taxed according to the regulations.

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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?

No buying Altcoins wont be taxed and no if the BTC is sold for crypto it won't be taxed. The tax has to be paid only for Crypto to fiat transactions.

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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?

I am not quite sure about it but Yes it should be considered as capital gain. May be the exchanges would be considering to implement the tax payments on their exchanges as well. We should probably wait for a while until the laws are established well.

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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?

Yes, whatever amount you withdraw at the end of your trade will be taxed according to the % of amount the law has stated. Even if you make many times the amount you invested, from many sources, it will still be taxed as it is considered as capital gain.

Thanks for the explanation. I think this is what I remember. The tax filing is going to get convoluted for people who have made tons of transaction. I have done some and I am already feeling it. Thinking about just now showing it on the tax.