Will someone please explain to my dumbass how like-kind exchanges for crypto to crypto capital gains under the 2018 tax code works? For example:

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Why does realizing they gain matter if you offset with losses? 10k in “gains” and “8k loasss” selling when down - wouldn’t that only be 2k

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If you buy 100 USD of ETH on Coinbase, hold couple months to 300 USD, transfer to binance and trade all that same ETH for NEO, ride for a couple months to 600 USD in NEO, and then trade for ETH, send back to Coinbase and cash out 600 USD, how is it different under new and old tax code? I understand before it would just be a $500 USD capital gain for the ending sale price vs Cost Basis, but having trouble understanding the steps under the new tax law... just trying to get a better understanding.

It doesn’t look as pretty when you throw some losses in there. Lets say you hold that eth for a week and that drops back to $300. You still owe $500 in taxes Since you realized your gains previously with the trades

@bcg1 What date is the cut off for realized unrealized gains? Dec31?

PwC, that was my impression

PwC - that’s what makes sense. Why will I pay taxes only on gains and not offset my losses

@S1, thank you - very helpful

If you don’t realize your loss then you can’t net them with your gains

Anyone know if wash sale rules apply to crypto?

I believe the 2018 tax code made like-kind exchanges only applicable to “real properties”. Most CPAs, crypto experts suggest like-kind declarations will not work in 2018. However for 2017 taxes it’s a gray area

It's not a gray area if you read the protocol for like kind exchanges

S&1 thanks. Will look up on the Internet. Also, will appreciate if you if you can point to any specific document you’re referring to

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