They used to qualify as "like-kind" trades and were not taxable until cashed out for fiat. However, in 2017 they changed the definition for like-kind, in which they simply changed "property" to "real property". So in 2018 going forward, all trades are taxable events.
"The Tax Cuts and Jobs Act passed in late 2017 amended code section 1031 by superseding the word “property” and replacing it with “real property.” This means that like-kind exchange treatment is still alive and well for real property, but personal property will no longer qualify for a like-kind exchanges and, therefore, will result in a taxable event." ocj.com/2019/06/ramifications-of-1031-exchanges-of-personal-property-under-the-new-tax-law/
The answer is simple; we're NEVER FUCKING SELLING.
Dominic Wilson
yet imagine if later on they say only fiat trades are taxable and that's on exchanges not when used as a medium of exchange. then they could retroactively apply this to prior years so that people feel they got a fair shake and everyone starts on the same level.
Do what you want. This is only for the people who legitimately do not know the legal status of taxes on crypto trades. I'm not telling you to not be retarded, I'm helping genuine non retards understand what they're looking at.
That has nothing to do with it. The definition was changed from "property" to "real property" that definition is for like kind transactions. Crypto to fiat is not like kind, so unless they change the definition back to "property" (which they wont) then crypto-crypto trades are taxable.
Gavin Williams
And I dont believe they can retroactively say anything in the past is owed. As far as I'm concerned, the law starts the period in which rules are applied. I dont think this is a real concern user
