you move 1 mil in btc into 1 mil in eth, the irs wants 20% NOW on the gains
Quite probably a very stupid question but where is the actual gain? Your initial dollar Bitcoin buy in versus the Bitcoin value at the time of the ETH swap? Is it all dollar denominated?
actually that was very bright, miners can claim not 'investment' since no buy, just work from assets
so their coin has no clear investment
but other than miners everyone else traded or bought with fiat
so you're a drug czar and traded coke for coin
how much did the coke cost
haha
oh, you bought 5 buck coin from mt gox and cold storaged it before the hacks
so you had very minor cost
but literally the irs is now saying as soon as btc moves from btc into anything pay them 20% on gain
so miners, how do you cost out your gain? good question, it could be the work is not an investment no cash or fiat to get it
so they could challenge first trade rule
but everyone else, how did you get your btc
you bought in on exchange you know the cost
you traded, well what did you trade for
so non fiat buys you can say you traded whatever and put huge value on it and low gains if any, you could take losses all day
I traded my 52 mint mantle worth 100k for 50k of coin, so I lost 50K so now the 90K I got is a 10K loss
so miners and real traders can play games
but if you took fiat into btc, they know the cost
and most with profits are in really cheap
but think what this does to traders
you have huge numbers in btc now with a few coins
you want to test eth and ltc or xrp
you do it after the end of this year, instantly the trade is taxable
so don't use gdax and coinbase or winkies gemini or the vegas exchange
this law just pushed crypto exchanges all outside the usa
in a year or two you won't have one usa based exchange due to this
great move donald you just killed off any hope of the usa having crypto exchanges
the game now is trading btc into ico's and taking some profits to the moon with new ico's
you want to hodl btc forever, okay, good luck, the next 3 years is all ico plays
and the hope of coinbase being a legit ipo is over
1031 has killed any usa based exchange
so if you got coins and cash MOVE IT NOW
coinbase will have problems soon paying people
as it is they limit accounts to a lousy 50k fiat exit a week, expect it to go down to 5k now
haha
anyway, that is what the end of 1031 means, it means usa exchanges can no longer compete with foreign exchanges
if you are a us citizen and want to pay gains on the btc you got cheap, go ahead, sure exit into fiat is fair 20%
but when you're talking about moving into other coins, that's just wrong
