Cryptocurrency tax considerations

• There's at least one place you can buy cryptocurrency that suggests you have to pay tax when you sell because "it's an asset".

  • This seems like it needs more research - most people don't pay taxes on gains they make when they sell furniture to each other
    • then again, most assets sold on e.g. facebook market are depreciating assets
  • This may open up a set of broader considerations with broader appreciating [[alternative assets]]

  A post from a lawyer

  Take with a grain of salt, found on reddit: https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/

  • Concludes that yes, you have to pay capital gains tax whenever the value of the asset is "realized" - meaning when you exchange your bitcoin for haircut, lawnmower, food, whatever. This could possibly change if reclassed to a foreign currency.
  • Also concludes that exchanging one crypto coin like bitcoin for other altcoins like ada or tezos does not get you off the hook. Those are "like-kind" exchanges which are also supposed to be reported.

  A Horror story

  https://www.reddit.com/r/tax/comments/9tcnu8/did_i_ruin_my_life_by_trading_crypto/ - Kid does not take into account tax considerations, even using coinbase, and ends up owing 440k on a portfolio worth 125k.

  Rumors of 80% cap gains on crypto

  https://investorplace.com/2021/04/80-crypto-capital-gains-tax-15-things-we-know-about-the-rumors/

  Tax for delegation rewards