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My accountant mentioned i believe not 100 percent sure but he said any trade whether altcoin to altcoin is taxable. He said like exchanges doesn't apply.
The thing is even if bittrex gives out financial info, there is no usd being traded. So if someone does a trade for 100 dollars profit and that person doesnt report capital gains or losses, then they would have issue?
The other issue if ppl could use other exchanges and have gains or losses there. Like someone could profit 5k on bittrex but lose 5k or more on binance. But you are telling me that person better have some number showing for capital gains then?
What about if you dont do any trading on that date and afterwards but have bitcoin and altcoins there and dont do any trading? What about if you withdraw your btc or altcoins to your wallet etc. Obviously that is nothing right since you arent trading it?
Yea the thing is if they do it where they actually send you a 1099 or whatever that is, then it would be very easy. Thus here is your profit/loss statement. The issue though here is this number wouldn't even be correct because when you sell the btc for altcoin and vice versa, they have no idea at what price you bought the btc you send them at. So there would be no way to calculate it. I think you could calculate profit loss on the site only but not the entire case because your btc could be bought at 1k or 5k or 10 etc. It would be nice if these exchanges did everything in usd. If that was it, its easy to calculate.
The issue is those ppl who do lot of trades. Or those ppl who receive and send btc a lot but do tiny amounts like 10 dollars and below. When you are using fifo, lifo or whatever method... that is a huge headache. How can anyone even do this? The other thing is what about fees you pay when trading? Are those fees expenses? Or are those fees like a 10 dollar fee... a fee that is from btc being bought at a certain price. I mean imagine you get btc 30 times and got them at 30 different prices and these prices were between 1 dollar and 5 dollars. You going to have to record not only every single transaction, but you need to deduct depending on fifo or lifo how much btc is left etc. This is basically impossible for someone to do this if they receive btc or send btc many times with small amounts. The only ppl that wont be affected by this are those ppl are just buy and hold or buy few times only. When you sell, its a headache because what if during that time, you had friends sending you 5 dollars in btc several times etc. Then you buy altcoin again. Well you have to make sure that 5 dollar in btc from those friends of yours are the last one out or something.
Does anyone here get what im saying here? Because this would be beyond ridiuclous to calculate.
The thing is even if bittrex gives out financial info, there is no usd being traded. So if someone does a trade for 100 dollars profit and that person doesnt report capital gains or losses, then they would have issue?
The other issue if ppl could use other exchanges and have gains or losses there. Like someone could profit 5k on bittrex but lose 5k or more on binance. But you are telling me that person better have some number showing for capital gains then?
What about if you dont do any trading on that date and afterwards but have bitcoin and altcoins there and dont do any trading? What about if you withdraw your btc or altcoins to your wallet etc. Obviously that is nothing right since you arent trading it?
Yea the thing is if they do it where they actually send you a 1099 or whatever that is, then it would be very easy. Thus here is your profit/loss statement. The issue though here is this number wouldn't even be correct because when you sell the btc for altcoin and vice versa, they have no idea at what price you bought the btc you send them at. So there would be no way to calculate it. I think you could calculate profit loss on the site only but not the entire case because your btc could be bought at 1k or 5k or 10 etc. It would be nice if these exchanges did everything in usd. If that was it, its easy to calculate.
The issue is those ppl who do lot of trades. Or those ppl who receive and send btc a lot but do tiny amounts like 10 dollars and below. When you are using fifo, lifo or whatever method... that is a huge headache. How can anyone even do this? The other thing is what about fees you pay when trading? Are those fees expenses? Or are those fees like a 10 dollar fee... a fee that is from btc being bought at a certain price. I mean imagine you get btc 30 times and got them at 30 different prices and these prices were between 1 dollar and 5 dollars. You going to have to record not only every single transaction, but you need to deduct depending on fifo or lifo how much btc is left etc. This is basically impossible for someone to do this if they receive btc or send btc many times with small amounts. The only ppl that wont be affected by this are those ppl are just buy and hold or buy few times only. When you sell, its a headache because what if during that time, you had friends sending you 5 dollars in btc several times etc. Then you buy altcoin again. Well you have to make sure that 5 dollar in btc from those friends of yours are the last one out or something.
Does anyone here get what im saying here? Because this would be beyond ridiuclous to calculate.
Don't think like kind exchanges are exempt from taxes in crypto. also I would make the best effort in paying taxes even if it seems like the IRS themselves will have a hard time tracking it.
