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?
RE: Trading Bitcoin for an Altcoin Won’t Shield You From the IRS Anymore
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Trading Bitcoin for an Altcoin Won’t Shield You From the IRS Anymore
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$.
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