wry Posted October 11, 2019 #1 Posted October 11, 2019 In eagerly anticipated but on balance pretty poor news, in the USA, the IRS today announced new tax guidance for crypto currencies. So read on and feel better about not living in the USA! Most importantly, the IRS did not give any de minimus level for crypto transactions. This pretty much keeps crypto from being a successful medium of exchange as any purchase using it is a taxable event as far as the IRS is concerned. So buy a coffee with crypto, congratulations you need to report the difference in the value of the crypto you used and what you paid to get it. Other changes included some guidance on forks. You owe taxes on the forked coins when you receive them, not when you eventually sell them. So it's possible you can get some forked coins, and their price goes down, so you owe taxes on more than what the coins are worth. In my view there was nothing good here for our US friends who want to use their crypto. Maybe I missed something? Link: https://www.coindesk.com/the-irs-just-issued-its-first-cryptocurrency-tax-guidance-in-5-years
Tanjiro2019 Posted October 11, 2019 #2 Posted October 11, 2019 Wow, US is getting tax in Crypto even crypto is not actually money yet.
wry Posted October 11, 2019 Author #3 Posted October 11, 2019 21 hours ago, Tanjiro2019 said: Wow, US is getting tax in Crypto even crypto is not actually money yet. Yep, in a way this is USA making sure crypto never becomes money, only "property" so that they can keep the US dollar strong. They were not too scared about Bitcoin but something like Libra scares the poop out of them. I would expect the Libra announcement lit a fire at the IRS and they moved ahead quickly, since the same rules for Bitcoin would apply to Libra.
wry Posted October 15, 2019 Author #4 Posted October 15, 2019 Update: In a follow up to this story, Coindesk reports that the IRS has added a question about acquiring crypto currencies to its tax forms. Link: https://www.coindesk.com/the-irs-will-now-ask-if-you-own-crypto-in-the-1040-tax-form Looks like it is a really really bad time to be a crypto investor or hobbyist in the USA!
niki014 Posted October 15, 2019 #5 Posted October 15, 2019 well i am glad i dont live in usa and i am sorry for u usa peeps
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