Re:IRS sends warning letters to more than 10k cryptocurrency...
by somebodythere on Friday July 26, 2019 @07:36PM
(#20539256)
> The IRS treats BTC [...] like stocks
This is also not correct. Crypto-tokens that are not securities are considered property. As such, they are not subject to wash-sale rules, while stocks are. (Not legal advice.)
Before anyone gets excited, despite being considered property, crypto-tokens are explicitly not eligible for 1031 like-kind exchanges after the latest tax bill (although it's debatable that they were allowed prior.)
Re:IRS sends warning letters to more than 10k cryptocurrency...
by nihonde on Friday July 26, 2019 @09:24PM
(#20539797)
1031 is for profits.
As far as I know, you can still take a loss, then re-purchase at FMV, and claim the loss, even though you end up with the same assets in your portfolio.
This is also not correct. Crypto-tokens that are not securities are considered property. As such, they are not subject to wash-sale rules, while stocks are. (Not legal advice.)
Before anyone gets excited, despite being considered property, crypto-tokens are explicitly not eligible for 1031 like-kind exchanges after the latest tax bill (although it's debatable that they were allowed prior.)