tax crash scam

[thresher]

I just thought i'd throw this into the mix, since btc is still on this plummet to nothingness.
Do I actually believe this, no, do I think there is some way a process like this could be done, absolutely.   

Major holders/miners are buying coins.  They are then selling older coins they were holding from a time where btc value was lower.  These lower coins are being sold after the newer coins are bought, showing losses.  The newer coins are being held and will be sold at a later date in time after another price spike and crash.  This would have created a paper trail of loss, giving benefits to them in other areas, while not actually sustaining any loss, and avoiding taxes.  All done in the midst of China. 

[MOB]

If you sell something "from when BTC value was lower" then you are, by definition, selling it for a profit.

[tacotime]

^^ Yes.  The only people right now who would do this would have to have bought in above the current price to be able to claim losses.

Of course with the US the way it is for capital gains (<12 months held means you pay double taxes because they're short term capital gains), even people who lost substantially will be cautious about selling now if they believe the price will eventually rise, because you reset the capital gains counter on your coins if you do that.

[thresher]

If you sell something "from when BTC value was lower" then you are, by definition, selling it for a profit.

The point was they are creating losses.  For example If you have btc that was mined to a wallet, there is no trail.  If you buy 1 btc on coinbase, transfer that btc out, transfer the older one in, sell it, you have a fake loss while retaining the coin you bought, and not really having a loss.  There is no way the irs could show that the coin that was sold, was not the coin that was bought.  The statement is there 1 coin for 1 coin.

Again, I don't believe something like this is happening, although I don't see why not to do it, if you were one of the original large holders.

[m3g4tr0n]

If they do that, they are literally taking a loss.

[theonewhowaskazu]

If they do that, they are literally taking a loss.

You are taking a loss, but you could try to use it as a way to fake a lower costbasis. Sort of. Maybe. Before, you didn't have any costbasis (well you did, for the electricity, but its going to be hard to report that). If you bought some at $800, you could try and claim it as a "reasonable" cost basis. Its a pretty dumb idea, though, as youre no less likely to be caught as if you just didn't report your Bitcoin gains for taxes at all.