Bitfinex and Tether required to end all trading activity with New Yorkers

Re:Bitfinex and Tether required to end all trading activity ... by SkyMarshal on Tuesday February 23, 2021 @05:33PM (#26243872)

Tax arbitrage, iirc. In some jurisdictions like the US, exiting your position into USD is a taxable event for capital gains taxes. I seem to recall stable coins were invented to avoid that. I can't imagine tax authorities allow that loophole though.

[ Parent | on HN ]

Re:Bitfinex and Tether required to end all trading activity ... by tablespoon on Tuesday February 23, 2021 @05:42PM (#26243985)

> Tax arbitrage, iirc. In some jurisdictions like the US, exiting your position into USD is a taxable event for capital gains taxes. I seem to recall stable coins were invented to avoid that. I can't imagine tax authorities allow that loophole though.

If they did, it looks like it's closed now. At least in the US, converting between two cryptocurrencies is a taxable event:

> There are plenty of questions about whether or not investors can claim a direct crypto conversion (e.g. bitcoin to ethereum) as "like-kind", avoiding taxes on those transactions. The tax laws changed beginning in 2018, and like-kind exchanges are only applicable to real estate transactions.

https://www.coinbase.com/learn/tips-and-tutorials/crypto-and...

[ Parent | on HN ]

Re:Bitfinex and Tether required to end all trading activity ... by jonplackett on Wednesday February 24, 2021 @04:37AM (#26248244)

I wonder what % of that is getting declared...

[ Parent | on HN ]

Re:Bitfinex and Tether required to end all trading activity ... by Bombthecat on Tuesday February 23, 2021 @06:37PM (#26244553)

In germany, they don't allow that loop hole.

If you made profit and traded against another coin, you pay tax, simple.

If you hold for a year though. You dont pay taxes.

My portfolio is up quit a bit now and its almost a year. Hope it stays almost like that just few more weeks :)

But who knows?

[ Parent | on HN ]