Mini data sheet on tax implications for cryptocurrency trading in the United States
04-02-2018, 01:57 PM
Quick update: unfortunately the new 2018 tax bill explicitly limits 1031 exchanges to real estate transactions, meaning all crypto-to-crypto trades from Jan 1, 2018 going forward will be considered taxable events.
There are ways around this, like (possibly) moving to Puerto Rico, or buying and holding in order to take advantage of long-term capital gains.
If you do insist on trading, I would again recommend cointracking.info. I've been using it for almost a year now and it has proved invaluable come tax time (not to mention having access to all sorts of other data). You can create a free account, although they'll ask you to upgrade once you hit 200 trades. If you're planning on buying an account, PM me for a referral code and I'll walk you through a couple of tips/tricks/things to be aware of as you use the software.
Happy trading fellas!
There are ways around this, like (possibly) moving to Puerto Rico, or buying and holding in order to take advantage of long-term capital gains.
If you do insist on trading, I would again recommend cointracking.info. I've been using it for almost a year now and it has proved invaluable come tax time (not to mention having access to all sorts of other data). You can create a free account, although they'll ask you to upgrade once you hit 200 trades. If you're planning on buying an account, PM me for a referral code and I'll walk you through a couple of tips/tricks/things to be aware of as you use the software.
Happy trading fellas!