Post
Topic
Board Tokens (Altcoins)
Re: Is Europe and Asia Markets enough? U.S. is dead by Taxes.
by
bahb00b
on 24/04/2018, 01:28:50 UTC
It seems many American posters don't understand that Crypto is classified as an Asset in the U.S.
That means every time u sell it (buy something) its a Taxable event requiring a Capital Gains Tax.
Every American here should know this since we just filed our Taxes.
This classification makes using Crypto as a Currency an Acquired price/Sold price pain in the ass!
From what I've read Europe and Asia have labeled crypto an "Alternative" Currency so the TenX model
is still viable in those regions.

I get this.  What I don't really get:  If you trade for something of equal value, what would be taxed?

The problem is the Tax Man doesn't consider it a "trade". They say u are selling one crypto and acquiring another all within that one transaction.
Let's say I Buy Nano with BitCoin on an exchange. My Capital Gains Tax is from any profit between BitCoins value when I acquired it and when I used it (considered selling) to buy Nano. If the amount of BTC used was worth $375 when acquired and worth $600 when I used it in the purchase the $225 rise in BTC value incurs a Capital Gains Tax.

This CNBC article outlines Crypto Taxes: https://www.c[Suspicious link removed]m/2018/02/21/everything-you-need-to-know-about-bitcoin-and-your-taxes.html