How does the 2017 tax law affect trading crypto to crypto?

3 answers

• Dec 29, 2021 · 3 years ago
  The 2017 tax law has significant implications for crypto-to-crypto trading. Under this law, the IRS treats cryptocurrency as property, which means that any exchange of one cryptocurrency for another is considered a taxable event. This means that individuals who engage in crypto-to-crypto trading are required to report and pay taxes on any gains they make. It's important for traders to keep accurate records of their transactions and calculate their tax liabilities accordingly. Failure to comply with these tax obligations can result in penalties and legal consequences.
  573287
• Dec 29, 2021 · 3 years ago
  The 2017 tax law has made crypto-to-crypto trading more complex from a tax perspective. Previously, some traders may have viewed these transactions as like-kind exchanges, which allowed them to defer taxes. However, the new law explicitly states that like-kind exchange treatment only applies to real estate transactions. As a result, traders must now report and pay taxes on the gains they make from crypto-to-crypto trades. It's crucial for traders to consult with a tax professional to ensure they are meeting their obligations and accurately reporting their crypto transactions.
  582194
• Dec 29, 2021 · 3 years ago
  Ah, the 2017 tax law. It's had quite an impact on the world of crypto-to-crypto trading. You see, before this law came into effect, some traders were able to swap one cryptocurrency for another without triggering any tax obligations. It was like a tax-free party! But now, things have changed. The IRS has made it clear that crypto-to-crypto trades are taxable events. So, if you're making these kinds of trades, you'll need to report them and pay taxes on any gains you make. It's a bummer, I know, but it's important to stay on the right side of the law. Keep track of your trades and consult with a tax professional to make sure you're doing everything by the book.
  668167