Re:Why the IRS Fears Bitcoin
by gamblor956 on Tuesday January 23, 2018 @04:52PM
(#16218108)
You are forgetting that the government doesn't need to track your capital gains, you do.
Any gains you can't prove are capital gains (or more specifically, are long-term capital gains, or collectibles gains) are treated as ordinary income.
Moreover, the government doesn't need to track your initial purchase price. You do. If you can't, you are treated as having paid $0 for the cryptos and are taxable on all gains.
Any gains you can't prove are capital gains (or more specifically, are long-term capital gains, or collectibles gains) are treated as ordinary income.
Moreover, the government doesn't need to track your initial purchase price. You do. If you can't, you are treated as having paid $0 for the cryptos and are taxable on all gains.