The SEC is Attempting to Reclassify CryptoCurrencies as "Securities" - May lead to Americans being unable to participate on Crypto Exchanges

submitted by WarmPotato from (helplbrysavecrypto.com)

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[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (8 children)

Cryptos are already taxed as property, short/long term capital gains depending on if you hold it a year or not. The IRS has been wanting their crypto taxes since 2016. This year is the first year the question if you own crypto will be on the irs form, and it's illegal to lie.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (5 children)

Wait, you only take a capital gain (and taxes) if you sell, right? That's the way it works in Canuckistan. I think it will be on the form here too.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (4 children)

Sales, gains not realized during trades (the particularly shitty one), and staking are all taxed in the US. You don't have to report cryptos bought with usd you hodl. Stablecoins are treated like any crypto.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

So if you hodl a coin for more than a year, you are taxed on its appreciation regardless of whether you sold it or not? If so, that is absolutely totalitarian and insane. ESPECIALLY given the upcoming extreme inflation.

[–][deleted] 5 insightful - 1 fun5 insightful - 0 fun6 insightful - 1 fun -  (2 children)

No. If you hold a year you get taxed a lower %, long term capital gains tax, than if you sell --or day trade obviously -- less than a year at a higher % (short term capital gains tax). But not till you sell. And Losses offset the taxes.

You get taxed on any paper earnings from trades which is the big sticking point. For example, if you trade ETH for ADA and if your ETH was up you pay taxes on that profit even though you never actually realize any profit.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (1 child)

Very scummy.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yeah it makes absolutely no sense, why do I pay taxes on something I see no money from!?

You get taxed on the earnings from staked coins too, also without realizing any profit.

That's the tax code as I understand it though.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

This year is the first year the question if you own crypto will be on the irs form, and it's illegal to lie.

Oh shit, that's heavy. I certainly hope there's more qualifiers than that in the final question. At any rate, there's always the possibility of holding crypto outside of your registered name and country and KYC laws.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

You don't have to report if you just bought, only trades and sales. I think. This is brave new territory.