Seeing so much bad US tax advice on #cryptotwitter. Yโall. Pay your taxes on your trades. Every time. Itโs really not technically complicated. ๐ฐ
@StackedBundles@itstylersays What you are describing is a like kind exchange and that only applies to real property. Each trade is taxable in or out of CB. You may not get a 1099 if outside of CB but itโs still taxable ๐ฌ
@twindrip1 @BoredApe5625 Absolutely. Iโm pointing out challenges around indirect tax reporting like SUT, VAT, DST. Doesnโt seem like anyone is considering that but they should be. ๐
In 2017, when I was first formerly introduced to BTC, a friend of friend said to my face โI donโt think you have to pay tax on BTC because I havenโt.โ Just because you havenโt doesnโt mean you donโt have to. Then or now. ๐คฆ๐ผโโ๏ธ
@skynine111 @BoredApe5625 Trading one NFT for another or one Cryptocurrency for another is not a like kind exchange. You would have to recognize gain on sale transactions. LKE only applies to real property.
@EmmettArmstrong @BoredApe5625 The IRS views crypto currencies and NFTs as property as opposed to currency. At least from a tax perspective, you should be able to apply the same principles to them as you would other property. (disclaimer: not tax advice blah blah blah)