Depending on your bracket for 2017, that could range from a tax rate of 10% to 39.6%
If you sold or used any Bitcoin after owning it for more than a year, they are considered long-term gains with a taxable range from 0% to 20% depending on your household income.
I found this on Investopedia - "In the US, long-term capital gains tax rates are 0% for people in 10%-15% ordinary income tax rate bracket, 15% for people in the 25%-35% tax bracket, and 20% for those in the 39.6% tax bracket."
I was under the assumption that the law just passed and changed crypto to property starting in 2018. exchanges did not track or report any trades for 2017. Thats why exchanges now make you use SSN and verification for 2018
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That is also what I heard, but I think you are still responsible for the capital gains you earn.
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yep...that is what I love about the IRS, everything is your responsibility and you have to prove that you did not do something 6 yrs ago. LOL
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Yep you do all the work and the government is there in the hand with their hands out to collect their share.
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Coinbase is issuing tax statements for tax year 2017, a.k.a. 1099-Ks. The assumption you can make is that Coinbase has been tracking the trades since the day they started, and have that data.
I don't know what to make of the fact that neither Coinbase, nor GDAX, required my Social Security Number. I volunteered my Date of Birth to Coinbase for some extra level of security, and I did have to send a photocopy of my Driver's License to GDAX. The question I have is can Coinbase issue a 1099-K without the Social Security Number?
Crypto was always property for IRS income tax purposes. The IRS clarified this in 2014, not 2017 as the author states. If you filed a tax return for tax year 2012 with cryptocurrency trades, you would still treat the crypto as property.
The new tax law for 2018 made it crystal clear that one cannot do a 1031 Exchange of cryptocurrencies starting with 2018. Whether one can do a 1031 prior to 2018 is hotly debated. The BIG CHANGE that people refer to is the clarification that no way can you do a 1031 starting with 2018.
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Cool. Thanks for the clarification. I did not provide my SSN either when I opened my Coinbase account, however, I also rarely use coinbase for any transactions anyways. Most of my trades, withdrawals, or any other transactions are always peer-to-peer or through smaller exchanges, some even international.
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