Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
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Buying and selling dash is not a taxable event for you? How is that?
Well I understood you pay captial gains when there is a fiat gain in value at the time when you dispose it, ie sell it for fiat. I'm in the UK. I hope I got that right. If I have to proof every single trade between Dash and Bitcoin or whatever other crypto I don't know how on earth I could even start to do that
Some exchanges I have used no longer even exist. Let's see the rationale for why it is a tax event with an example:
- You hold 1 BTC you bought for $1000
- Some time later you decide to buy dash
- Dash at that time has a "fair market price" of ie $100 whilst BTC is not at $5000
- If you were to buy 50 dash with FIAT for $5000 that would NOT be a taxable event (you need to take note and keep records of the buy though, for the future).
- But you instead decide to use the 1 BTC to buy the 50 dash. So, in effect, you have "SOLD" your 1 BTC at currently HIGHER price than what you bought it. You have had a realized $4900 cap gain that you "should" report -because that's not automaticly reported- and pay for it.
SO it is no different than just selling the BTC and using it for any other spendings/investments.
Of course you can choose not to report it. Maybe they will find out or not. It also depends on how much we are talking about, etc etc.... Oh, and if some day those dash skyrocket and you sell them.... How are you gonna prove when and how did you bought it in the first place? With which money? Oh, it was with BTC you "sold" but didn't report... hmmmm....
It sucks yeah....