Trading Bitcoin for an Altcoin Won’t Shield You From the IRS Anymore

in cryptocurrency •  7 years ago 
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  ·  7 years ago (edited)

Ugh, I was afraid of this happening. Does this mean that if you day trade for a week and the money flows through lets say 10 cryptos, that somehow each one of those would be taxed at the short term rate? Wouldn't that equal 100 percent? I understand that the government is crazy unfair, but I don't think this happens with day traders so what would that scenario fall under?

No, typically only the profit at end of all trades would be charged.

So if you bought coins worth 10$k and then you did buying and selling of 10 of thousands and at the end are left with 25k$ and decide to sell it off, then you would be charged for income of 15k$.

Is there any place currently to hide from the IRS or other regulatory agencies other than starting with zero money trails?

Fly into space and live in your spaceship, IRS will never find you there!

The US is getting more and more strict with this. They should not try to stop innovation, blockchain is unstoppable, they should embrace it.

welp, i guess we just hodl until you can actually spend cryptos straight out? this is infuriating, i can't believe they are taxed at all. It's literally money, they are literally taxing people because they are holding money which happens to gain value in relation to the USD? that's insane. I understand if you want to tax mining/staking rewards as income, but this is ridiculous.

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