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So I was originally going to call for like-kind exchanges for bitcoin to altcoins, but I guess that's meh.
What if I bought a lot of bitcoin, and instantly put it into bittrex to trade for altcoins (which is what I did)? So the change in bitcoin value was immaterial to when I exchanged it for different altcoins. Can't I just consider those coins as the cost basis I had from bitcoin? This is going to be way too confusing and its pissing me off
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>>2975273
Forex traders can't call EUR and USD like-kind trades, so why would you think that applies to BTC and alts?
You made a small capital gain or loss from BTC between when you bought it and when you bought the alts, so report that, then use the stepped up or stepped down basis for your alt gains/losses.
Not tax advice btw.
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>>2975593
IRS defines cryptocurrency as property, but it's still "ehh, idk, probably wouldnt to ve conservative" from what ive read
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>>2975273
I spoke to an accountant and he said crypto is treated "exactly like securities" meaning that any trade is a taxable event. so from what i understand, when you bought bitcoin and transferred them to bittrex, thats just considered a transfer but when you buy an altcoin - its treated as if you sold the BTC for USD and then bought the altcoin for the USD value. Therefore you'd be taxed on whatever BTC increased in value between the time you bought it (BTC) and the time you bought the altcoin.
this all applies if you a US citizen though. if you are in the EU i think your tax is easier and less depending on the country
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