US IRS tax reporting for cryptocurrencies

#1

Hi Guys & Gals,

I live in the US and have questions about tax implications of owning crypto currencies.
I didn’t find any top with this so am creating one here.
I am curious as to what websites/software are you guys using for creating tax statements.

  1. Do you have to pay taxes when you exchange/buy altcoins with BTC, ETH?
  2. If you are not selling any coin, do you still own taxes?
  3. Any good CPA names for crypto tax reporting purposes?

I would appreciate any input in this regard.

1 Like
#2

Hi,
I am from switzerland so I don’t know how it works in the U.S. But as far as I know, the coins you own you don’t have to tax as they are considered an investment. At least that’s how it works back home. You have to pay taxes once you bale them out and put the value in U.S. Dollars back in your bank account. But again, this is what I know this far. I need to do more research too.
Thanks for starting this topic.

Cheers

#3

This is what I have found so far:
You have to pay taxes when you sell to fiat. As long as you just buy and don’t sell or don’t exchange to other altcoins, you need not pay taxes.
You have to pay taxes even when you have to exchange BTC, ETH to altcoins.

There are several tracking websites for tracking your portfolios such as cointracking.info, bitcoin tax, libratax etc.

#4

Hi
thanks for the respond. But I assume this counts for U.S. citizens right? And how exactly do they want to tax it? I mean the prices are still very volatile…

#5

Bitcoin is treated as property. So when you sell or exchange for some other altcoin, it is considered as a taxable event. prices can go up and down but what matters is what price you sell or what price you exchanged for another altcoin.

#6

Oh ok thats very interesting to know. Well, what happens after the fork, which BTC will be the real one (the original as it keeps its value as a storage of value and doesn’t need to upgrade or change code) and if theyre going to tax the b2x… haha

#7

after the fork you will get B2X whereever your bitcoins are there. So if u have 1 BTC, you should get 1 B2X.
I think if you sell that 1 B2X then you will incur a taxable event. As long as you don’t sell it should be ok.

#8

So if I get it right, when I don’t sell my B2X I don’t have to pay taxes, but if I do, it would be a taxable event? Interesting, specially after I heard that there is quite some banksters linked into this chain split…