Quote from: bahb00b on April 24, 2018, 01:28:50 AM

Quote from: Badassname on April 23, 2018, 02:58:05 PM

Quote from: bahb00b on April 23, 2018, 02:04:41 AM

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

Hey, thanks for this. From my understanding, cryptos are considered property, not currency in the US. So, if I trade a bottle of water to you for a bag of beans and then a month later, you decide you really want your beans back. I say those beans will cost you 3 bottles of water now. This is a taxable event and I will have to pay tax on 2 bottles of water? Sounds rediculous to me.

Badassname

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