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IRS and Coinbase update


ThomasV

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https://www.ethnews.com/coinbase-sends-irs-summons-notification-to-13-000-customers

I find that for those using coinbase AND in the USA to note this.  I've also read somewhere in the past that Coinbase is sending transactions in excess of $5,000.  This makes senses as it complies with money laundering rules. (I'm pretty up to speed on these issues).

image.png.eebdfc9f50aa0e017ac06ac94ee75e4d.png

Above if just a funny statement.

Also interesting that Credit Card companies are classifying as a cash advance  I think we are getting into an interesting part of crypto not explored yet and that is the legal mess this is all creating 

[at least for USA citizens]

 

 

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Yep :) the wonderful IRS and as regulations come and are forced will this help the growth of crypto or stifle it? Coinbase is insignificant, but the easiest exchange to buy from a card or bank account in the US. Ultra fast deposits back to your bank as well next day much of the time.

This is exactly why 2018 will not be the epic year for crypto 2017 was the year for INSANE life changing gains. 2018 will be good a few hundred percent, but the thousands upon thousands from any mass traded coin is doubtful.

 

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This is definitely a big mess. It is also since we don't have a USD/XRP fiat pair, every time I buy ETH, LTC or what ever from a Coinbase and then convert it to XRP thru Shapeshift or Binance, it is a taxable event. Every time, I add to the current XRP holding, I am having to keep the record for the tax purpose. This is getting a bit ridiculous.

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48 minutes ago, ringer2 said:

is there anything to pay tax on?

Correct there is no tax due if the sale price of ETH, was equal to the purchase price in $US.

Regardless of this fact though, each sale is a taxable event that has to be recorded on your taxes. Eventually, when you exchange XRP you will have another taxable event, and my guess is the gain will not be $0. For this reason track all of your sell/purchase dates and price in $US. 

Side Note: When you report XRP gains on your taxes, use the term DIGITAL ASSET.  However when you report ETH and all other coins use the term Crypto Currency.  This is not an IRS requirement, just my request to keep XRP separate from the herd.

Edited by Valhalla_Guy
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Love to see tax avoiders get hit. 

One big reason I went with XRP over Bitcoin was the lack of ideology that encourages people to leach off society.

Hoping for BTC to get hit with regulations for leaching off our environment.

Edited by flanman
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