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Day trading is impossible cryptocurrency taxes

day trading is impossible cryptocurrency taxes

exchanges should consult with a tax attorney or other knowledgeable tax professional to evaluate the relevant statutes, regulations, and case law to determine whether an adequate level of legal authority exists. However, there are no guarantees and no way to confidently predict what position the IRS will ultimately take, if any. Taxpayers who don't file the disclosure statement will have to have "substantial authority" in order to avoid any penalties. Disclosure Statement with their tax return. But with crypto at least right now in the current market, it IS possible. Truth #4: You may end up owing additional taxes, interest, and penalties. The 2017 tax season is officially underway, and one of the hottest topics among cryptocurrency investors is the possible application of Section 1031 to defer capital gains on crypto-to-crypto trades. If crypto rises or falls, so does your networth. So if my total coin values go down by 80 tomorrow, then my networth at that instant is only 200,000. First, as discussed above, the absence of direct authority on the issue means the IRS is free to reach its own conclusions about the qualification of crypto-to-crypto trades as like-kind exchanges. .

Its the best youll find by someone who knows his shit (me!). Now, up until this point, the value of cryptos has been pretty chrome.options electron binary java speculative. And it still keeps growing. If you do your research right and pick coins with a solid future, you can be confident if you just wait long enough, your coin values will rise. What does this mean? As coins get more mainstream attention and the crypto market cap increases, the value of coins goes. Look at the ethereum graph: Ethereum started out at a mere 2 dollars back in 2015 and now is over 300. My 130,000 investment, which is what I was worth July 31/August 1st touched 1 million USD last week.