[2017-12-13] Uncle Sam's Surprise: Tax Reform to Impact Crypto Investors

[moriskarlov]

The U.S. tax code is on the brink of its largest overhaul in three decades.

And while neither the House of Representatives or Senate version of the tax bill (both have passed in their respective chambers and are in the process of being reconciled into a final bill) specifically addresses cryptocurrency, several rule changes could potentially catch bitcoin holders who realized eye-popping gains in 2017 by surprise.

So far, both versions scrap the "like-kind" exchange mechanism that many cryptocurrency holders have used in the past and the Senate version proposes a "first-in, first-out" (FIFO) accounting framework, which could complicate cryptocurrency token reporting.

Yet, the proponents of the reform, including President Donald Trump and the majority of Republicans on Capitol Hill, argue the goal is to make paying Uncle Sam far less torturous of a process for everyone.

Representative David Schweikert, the Arizona Republican who serves as the co-chair of the Congressional Blockchain Caucus and the Ways and Means Committee, which oversees taxation, told CoinDesk:

"With a more simplified tax code, individuals will be able to navigate the challenges that bitcoin and cryptocurrencies face with more ease."

Unfortunately for crypto-holders, the Cryptocurrency Tax Fairness Act – of which Rep. Schweikert is a co-sponsor, was left out of both versions. Neither version modifies existing capital gains tax rates, which cryptocurrency is subject to pursuant to the IRS' 2014 guidance.

Full article - https://www.coindesk.com/uncle-sams-surprise-tax-reform-impact-crypto-investors/

[Searing]

The current tax bill which will go into effect in the USA does not allow "like kind' anymore on Crypto.

This means that when I xfered LTC to BTC and did like kind exchange (shapeshift.io a like-kind exchange) I was supposed to keep track

In that most of my crypto transactions, were simply to pay bills or get equip from A to B and not on the exchange long...this will be minimal for me

for those folk trading between crypto on like-kind exchanges you could be in for a world of hurt

in that IF the tax law is signed in 2016 it APPLIES to 2016....

I used www.bitcoin.tax free site options to see what I did mining simply by plugging my BTC, LTC, and DASH

mining addresses in.....so that is taken care of

but I don't do excel...so can't get the format right to get a CVS file of in /out transactions (even thou most were only a few

days to get equip or hoard a month for equip buy) .... so if anyone looks into this and can figure out this simple excel

field names from their example feel free to post here or PM me for a BTC or LTC tip!

anyway.....this is gonna suck for some folk

brad

(luckily, kept only 3 mining addresses all year and I can do this by hand..but the bitcoin.tax site looks pretty slick ...even thou

I can't seem to figure out some of it!...at least I verified my by hand mining income was correct...before I choked)

[Searing]

Too late in the USA....like-kind is going away for crypto....in 2017 no less...fun times in the Republican 2017 tax bill...it is toast


https://www.allcryptocurrencies.news/bitcoin/gop-tax-bill-blocks-potential-bitcoin-gains-gambit-2/

there is talk also of BCH when it hit the blockchain (around $280) also counted as income....along with BTG and the 22 other forks

all will apply to 2017 because Trump plans to sign it into law before Xmas



this is gonna be great fun (not)



save yourself....I'm doomed the IRS knows who I am