Theory is simple, but the actual practice is not. If you buy BTC for 300, two years ago, and brought ETH from portion of it in 2017, which you invested into ICO, then you sold it to ETH. Each of those transaction is applicable to the tax calculation. Doing this for active investor in crypto ICO, coins, is quite cumbersome.



Well I want interested in hiding my gain, but I seem to understand most of people in crypto currently are hiding the gains. I am trying to understand, is it because of lack of knowledge about tax or its truly tax free. From what i understand thus far, its definitely not tax free. So why were there only 600-800 people filing crypto on their tax return between between 2014-2016 (per IRS).

Thus, trying to find more knowledge from fellow community members, or share some knowledge thus far.

Yes, after skimming the new tax bill. The definition of Like Kind Exchange was changed from Property (which crypto would count as) to Real Property (which crypto would not count as).

Either way, for 2017, I am going to place all my crypto transaction on 8824 and claim as like kind exchange.

Moving forward, I am looking to explore option to have a good tracker created or find one that will help with tax filing. I found these two applications that may have ability to do this for 2018. Any one have experience with them (Bitcoin.Tax and Cointracking.Info). Not sure if they are hoax sites, but will try to find more information about these.

Given the crypto will be taxed at normal income tax for short term transactions (especially ICO participation), I will have to consult with an knowledgeable accountant for guidance forward to reduce tax rate. Else large gains in crypto world means lots and lots of taxes.

I am going to start Telegram Channel to talk about taxes if we can get others views there.

I read through much on this topic over last week. I am in alignment with SP_Skeptic regarding the 2017 tax for US investors. Where we can use like kind exchange to document any transactions between crypto. NOTE: This goes away for 2018.

Any any time we convert from crypto to fiat, we will have to pay taxes.

Big issue going forward to 2018, I see is for people going from one crypto to another, will have to pay in USD taxes on any gains they made through that transaction. So people will be forced to convert portion of their crypto to crypto transaction into fiat (USD). Unless people wish to pour in new set of fiat currency into their investment. (Big Mess ahead).


Regardless, I wonder there seem to be a lot less knowledge amongst the crypto investors (due to lack of responses here). Does these mean you all do not currently disclose crypto transactions on your taxes? or people just don't wish to share their experience and knowledge to community?

I understand crypto is world wide, but I would expect at least 30-40% investors from US. I would love to hear what others do currently or plan to do during their 2017 filing in US.

Thanks sp_skeptic for insight.

Based what you are saying, it seems like the taxes is going to be a big pain and a potential needle to slam the coin bubble boom.
So basically, one would need to disclose any transaction to IRS after initial purchase. If the coin purchase with cash (initial transaction) is kept in the original coin value, than that doesn't need to be disclosed to IRS until that is cashed out.


If you have any sources, I would love to read more.


Biggest thing I can't seem to digest is paying taxes while the capital gains is not realized (coin transferred from one type to another). If we treat BTC/ETH as assets, then its just a commodity trade until commodity is realized to be cash then only we should be liable for tax.

The way I see it, currently IRS hasn't officially provided their stand on anything. And when they do, I am sure they will go back and hunt down all the transaction.


Why didn't recent tax bill reform include this as a major point of discussion! (sorry not to get political) But this just lets me distressed for all the crypto action I have been doing and plan to do.

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?

I didn't mean that small but like 1 BTC. Thanks for the viabtc tip, I wasn't aware of it.

I understand people's view and I too believe everyone needs to focus on main BTC to minimize rise of these forks. Even if these rises, they can on its own disappear without much support. However last two times, I also expected this and both BCH and BTG are now significant value to something people attract to claim.

I just hope, these tiny but increasing in quantity of forks don't become needle to pop the BTC bubble that mainstream media/speculators believe it is.

Hi,

I am relatively new to crypto world. But lately, as many of you may have seen and experienced. The BTC and its derivatives are undergoing forks after forks. I understand various changes are being made as forks go through. But as a really small holding of BTC in electrum.

I see a list of new fork coming:

Bitcoin Diamond (already forked)?

BTC Twitter:
Upcoming #Bitcoin Hard Forks:
Super Bitcoin (498888 block)
Bitcoin Platinum (500000 block)
Bitcoin Uranium (unknown)
Bitcoin Cash Plus (501407 block)
Bitcoin Silver (TBD) $BTC


Every time new coin comes out, the guides to claim forked coin is to move your initial holding to new wallet. Then use wallets like coinomi to transfer the old wallet key to claim forked coin. I am trying to determine how do others keep claiming their newly forked coins? Do people usually create new wallet as these forks come by? I already created third wallet from BTC to BCH and BTG. Every time I move coins, I loose my BTC holding size (making my tiny holding micro).

Help!!!!

thanks for good walkthrough. I am iOS user like sylance. So I may have to try andyroid with coinomi instructions.

I will share what happens thanks!

I use Electrum Wallet for BTC.

So since the bitcoin gold is finally on the coinmarketcap, I understand (after reading few news articles) bitcoin gold (BTG) was indeed officially forked. I was very confused with fork being cancelled and now coin cap listed on coin marketplace.

Since it is officially coming up on the exchanges. Can someone provide information on how to claim BTG? There seem to be a lot less information compared to BCH fork. Is the official date of fork Oct 23rd? I since have moved portion of BTC holding from offline wallet to coinbase. So hoping I still get original value that I had in my wallet at the time of fork.

Hope for more information, anything is appreciated.


Side question...starting with same momentum as BCH, do you think BTG will follow its predecessor's rollercoaster ride?

Thanks all! I am now in control of my BCH.

Let me share my experience.

After much debate, I finally decided to use Electron Cash 2.9.3.
1. Moved my BTC to new PC into new Electrum wallet.
2. Downloaded 2.9.3 electron cash.
3. When I first opened the electron cash wallet, since I had electrum configured previously, the wallet came with wallet_default (with 2fa) and logged me into my wallet. It quickly synchronized with BCH balance. I was quite happy with easy process. Yet, I tried to send my BCH to exchange, and I came with an error (error: The transaction was rejected by network rules. (16: mandatory-script-verify-flag-failed (Signature must use SIGHASH_FORKID))).

So I became quite concerned and my search around web continued. Ultimately I came across someone with same issue and long be hold, I was on way to a solution.

4. Move the wallet_default file from the electron cash folder to other folder on your computer.
5. Create brand new wallet, name it something different.
6. Then create new wallet using existing seed and disable 2fa (steps previously provided by escrow.ms ... Thanks!!)

This worked for me. I am sure many may have already described this before, but wanted to share this experience if noob like me is trying to work with electron cash wallet.

I still would like to know what people thing about storing BCH in electron cash wallet vs big exchange (which I feel like are less secure compared to wallet on computer)...any thoughts?

Thanks! Coinomi is iOS only, thus hesitation as I wanted to keep coin on computer instead. Also, I see they don't call out bitcoin cash on their supported coin area. They have weird names as Bitcoin Plus and Bitcoin Test.


Thank you for sharing Electron Cash review. Seems like that is somewhat stable, but not worth keeping there for too long.

Would one recommend keeping coins in Electron Cash wallet vs large exchange (maybe polonix) would would be more secure for somewhat longterm storage.

I have been searching to claim bitcoin cash from Electrum for awhile. I reviewed few too many posts regarding this. For every positive sign, I found a negative sign. I wanted to get opinion on my next steps.

I already transferred my BTC from one electrum wallet to another of different computer.

Now I was planning to use Electron Cash 2.9.3 (current version). But I see negatives may loosing their BCH as they process; and there are many success stories.

Can someone (few members) please shed some light?

Is there a way to transfer BCH direct from electrum to perhaps an exchange until electron cash becomes more stable?

Final block mined!! time to wait for BCC blocks now...