Mini data sheet on tax implications for cryptocurrency trading in the United States
06-13-2017, 08:06 PM
Great info, as usual OP +1. My research points to exactly how you lay it out: crypto-fiat is a taxable event and crypto-crypto is a 1031 like-kind exchange, but another solid contributor on this forum also consulted with a tax attorney and he was told that like-kind treatment would not likely hold water. Whatever the case, I agree with your suggestion that one keep excellent records of purchases/sales no matter what the method.
In the unlikely event that you're audited, you can state with support that you tried your best to adhere to IRS regulations in good faith and you'd likely be able to make good with little to no penalties and interest. My CPA is annoyingly conservative but even he told me that he could hang his hat on that stance.
In the unlikely event that you're audited, you can state with support that you tried your best to adhere to IRS regulations in good faith and you'd likely be able to make good with little to no penalties and interest. My CPA is annoyingly conservative but even he told me that he could hang his hat on that stance.