Tax implications of crypto trade?

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Coinbase has a tax basis report that you can use to track cost basis, but you have to figure out your gains and taxes yourself.

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I don't think you pay tax on unrealized gains because it's not treated as a currency. You just pay tax when you sell it for cash or exchange it for another crypto.

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So many wrong responses in here. It is similar to property in that you're only taxed when you sell it. The IRS issued a bulletin back in 2014 that CLEARLY states how to treat it. Keep in mind you have foreign asset reporting requirements if your wallet is with an overseas exchange.

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D2 is right. There are programs to track trades. The guidance from the irs is still relatively unclear but it looks like crypto-fiat and crypto-crypto are both taxable events. You would need to know the prices of both cryptos at the time of all trades as a result. It’s going to be a shitshow.

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Treated as an intangible asset. You pay tax on selling price - cost basis. Doesn't matter if you sell for cash or convert to another crypto.

If I'm incorrect, someone please correct me.

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Thanks D2

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Use Bitcoin tax. It will calculate everything for you. If you have a lot of trades pay for premium for like $30 bucks. It will save you a lot of trouble.

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Same as stock when going to Fiat ?

Report as investment? What’s the irs position?

So do companies, like Coinbase, issue tax forms or is it on you to track your gains and losses?

What if I’m holding the position and it volatile
How do you even report it

Sounds like if you did all your initial purchases in CB then transferred to an exchange and got into a bunch of alts then it will be a headache

Just don't keep anything in your CB account and move everything you buy to addresses only you know.

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