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A comment on IRS sends warning letters to more than 10k cryptocurrency holders. Parent comment

Re:IRS sends warning letters to more than 10k cryptocurrency... by garmaine on Friday July 26, 2019 @06:26PM (#20538892)
> IANAL, I'm not a tax expert, but I believe you can deduct losses when converting to/from fiat currency (US dollars). Which is where taxation would take effect.

You are flat out wrong. You are taxed on any income or transaction, no matter the currency used.

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Re:IRS sends warning letters to more than 10k cryptocurrency... by tracker1 on Friday July 26, 2019 @07:32PM (#20539234)
IIRC, you don't pay capital gains/taxes while sitting on one share of stock that you haven't exchanged yet.

When you trade it, that's when you get taxed.

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Re:IRS sends warning letters to more than 10k cryptocurrency... by sbov on Friday July 26, 2019 @11:57PM (#20540297)
That's when you buy it. I'm not an accountant, but AFAIK if someone gave you stock for performing a service you would pay taxes on it at that point in time. Then if you sold it you would pay taxes on the difference in value.

I think the key might be that the IRS is viewing bitcoin as a payment for the service of mining.

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