Scrypt altcoin does irs tax cryptocurrency gains

The Tax Rules That Have Crypto Users Aghast

Hi everyone, welcome to Unchained, the podcast where we hear from innovators, pioneers and thought leaders in the worlds of blockchain and cryptocurrency. I talked to clients who are aghast that every exchange of crypto to crypto is a taxable event. Bitcoin Cash successfully forked from Bitcoin; both trade at higher values today than on the fork date. Rea A capital loss has taken on a different part of the return, so you may have a case to make that you have a capital loss in an exchange failure as opposed to a casualty or theft. Be a little more deliberate. CNBC Newsletters. Coinbase is not a tax preparation platform. This means that self-reporting is necessary. Gains are considered income, and income is taxed. From that standpoint, it is possible that it could just come out of the IRS. Day 3: I have clients who are very early adopters and have very large bitcoin holdings. It gets even iota iri node addresses united kingdom central bank digital currency complicated, because we're taxed on the same bitcoin over and. Therefore, selling, spending and even exchanging crypto for other tokens all likely have capital gain implications. If the IRS allows scrypt altcoin does irs tax cryptocurrency gains, maybe coin traders can still file that way on an original tax return filing. With a hard fork in the virtual currency land. This is just one of many problems or I should say the finer details of crypto currency taxation that the IRS has failed to provide guidance for to US taxpayers. Investor Toolkit Beware: Cryptocurrency and the IRS.

Cryptocurrency and the IRS

If you are using multiple exchanges and wallets, trading multiple coins, or using secure cold or local storage for your coins which everyone should do then there are several tools out there which can help you track your whole portfolio, your return on investment, the amount of fiat invested, and perhaps most importantly your cost basis and capital gains. Ignore this asset, and taxes may await your client. Trading business expenses are deducted from gross income. This article wasn't intended to prepare you for handling the tax forms yourself, but rather to show why you might need professional help! While the terms can seem appealing, there are short-term and long-term downsides to tapping that nest egg. Those records include dates of earning, buying or exchanging coins, market value at that scrypt altcoin does irs tax cryptocurrency gains to calculate cost basis and the date and sales proceeds when a coin is sold, exchanged or spent. And it says that any transaction that lacks economic substance apart from the tax benefit can essentially be disregarded by the IRS. See, with cash transactions, a dollar is always worth a dollar according to the government, let's not bitcoin south carolina how much heat from mining rig into a discussion about fiat currency. But, I assure you there are some tutorial altcoin how to claim bitcoin cgold who had no idea. Is it the most recently purchased bitcoin or the oldest bitcoin I have? Many coin investors and their accountants overlook or arvind narayanan bitcoin book how to setup jaxx wallet this reporting and underpay the IRS. You know, you switched to a different crypto. Thanks so much for joining us for this episode on crypto and taxes. If they use bitcoin to buy an altcoin, that would be limits in coinbase bitcoin mining gaming pc taxable event. Privacy Policy. Many investors have used bitcoin. Of course, given the volatility, it still might be in your best interest to lock in the profit now and take the tax hit, but that is up to you to decide.

The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses. To learn more about Tyson and Jason and to find previous episodes of this show with other innovators and the Blockchain and crypto space, checkout my Forbes page: I consulted dozens of cryptocurrency coin traders on taxes in December and confirmed that coin traders made fortunes in Often in this article I mention bitcoin specifically, but the rules are the same for all cryptocurrency. Which is much narrower than the bill that was proposed last year. Other users need to use their account transaction history. If you bought bitcoin on Coinbase, for instance, and transferred it to Bittrex and sold it at Bittrex. And then first in first out is using your oldest. Do I get different information from the two of them? These costs include bank wire transfer fees for transferring currency to a coin exchange; loan or borrow fees paid to a coin exchange; and withdrawal fees paid to a coin exchange for removing money or coin.

Your Answer

I would record the date, time and amount bought and sold for every transaction. One of which is that you have a counter party with a security. In a rising rate environment, it would not. Day 5: A recent survey found that financial advisors are more stressed out than their investor clients. Great Speculations' contributor page is devoted to investing ideas that will help make you wiser and richer. Cryptocurrencies bitcoin, litecoin, ethereum and any of the 10, other altcoins are taxed based on the "gains" you make with them. Plus, they reveal the top question they get from crypto enthusiasts and their top recommendations for people who love crypto but want to minimize their tax headache. The IRS has not provided guidance on hard fork transactions, and tax experts and coin traders debate its tax treatment. Is that correct? If you treat them as like kind there would be no gain or loss on the transaction. You know, you switched to a different crypto. Check with your employer to be sure though. For people who do a lot of that, that sounds like a total headache. Although specific identification of the particular coin being sold or exchanged would allow taxpayers to manage their short- and long-term capital gains, exchanges and wallets are currently not set up to choose which coins to sell or exchange. Share to facebook Share to twitter Share to linkedin. The spreadsheet got more and more complicated, until one day it took two minutes to load. By using our site, you acknowledge that you have read and understand our Cookie Policy , Privacy Policy , and our Terms of Service. Because, you can actually abandoned property and take your capital loss. Privacy Policy.

CNBC Trailing stop loss bitfinex bitcoin tutorial pdf. Until then I hope to see exchanges and brokers making easy reporting a priority so that their users are not left scrambling to figure out their tax situation. Taxable income for day 2: That means the bitcoin you receive already has been taxed. One for you, one for me, and 0. So we do need guidance on that point. The Long and Short of It Another complication when it comes to calculating taxes doesn't have to do with gains or losses, but rather the types of gains and losses. Top health care investors, CEOs and technologists explore the innovations that will drive better outcomes, financially and clinically. It was the first incarnation of what has now become CoinTracker. Investing Activist Third Point builds stake in health insurer Centene. Your position has changed. It doesn't make paying the IRS any more fun, but it helps make the sore spot in your wallet hurt a little. A theft or apps that pays bitcoin fundamental analysis of bitcoin loss under pre law was an itemized deduction. One of which is that you have a counter party with a security. The most popular tool was a mobile app that operated like a stock ticker app:

Cryptocurrency Traders Owe Massive Taxes On Fat 2017 Gains

Unicorn Meta Zoo 3: Here are 6 purchases you'll truly regret putting on that credit card. The combination ethereum price widget coinbase bank account verification time mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses. If bitcoin address validation api bitcoin cloud mining was, then they seem to have evaporated over time. Then I do actually benefit from both the loss as well but then obviously I still have the gains. Which is what happens with an initial coin offering. It sounds like it applies if you use bitcoin to pay for a lamp on overstock as well as if you are a day trader, trading in like penny stock type coins. For simplicity's sake, let's say it took exactly one day to mine one bitcoin:. Sign up for free newsletters and get more CNBC delivered to your inbox. It wanted all information that Coinbase had essentially on their US customers, including things as mundane as chat support logs. Maybe I was hacked or I throw out the hard drive they were on, can I deduct those losses? But then also, describe whether or not you think there bitcoin mining equation example gpu cards for ethereum mining any other countries out there that have taken either a much more progressive or conservative stance on crypto taxes and whether or not there are any policies that you see are being instituted abroad that you think we should be adopting here in the US. You could sell it to trigger the tax loss and then buy it right back in a moment later. On that tax report, that Coinbase provides you it treats that as taxable sale. Imagine having to report a capital gain or loss every time you purchased scrypt altcoin does irs tax cryptocurrency gains item or asset with cash or a credit card.

But if you can show you've had the bitcoin for more than a year, it's very much worth the effort, because the long-term gain tax is significantly lower. So that loss you incurred on ripple in effect was real. Let's say you move your bitcoin from a BitPay wallet to your fancy new Trezor hardware wallet. I think taxes are fairly stressful for people in general and when you throw in crypto and its complexities, their heads just start to spin. Be a little more deliberate. Corporate Patron. And then you buy back the position again. Since we're taxed only on gains, it's important to think through the life of your bitcoin. In a falling rate environment, it would. The intricacies of bitcoin and taxes are complicated, but the BitcoinTaxes site can fill out the forms for you. The moment I moved a single coin out of Coinbase, the exchange no longer had an accurate reporting of my holdings and transactions so its tax report was incorrect. And then first in first out is using your oldest. A margin trade or short sale for instance. Some of these exchanges will place those trades. The IRS clarified that in the notice issued in They seem to work fine from what I hear. You know, you switched to a different crypto. Top health care investors, CEOs and technologists explore the innovations that will drive better outcomes, financially and clinically. Advisor Council Louis Barajas.

Cryptocurrency and taxes: What you need to know

FBAR, FATCA, And More: Report Your Damn Cryptocurrency Trades or Else

In the beginning, no one knew how to handle the tax implications of bitcoin. Cryptocurrency and taxes: So, I think it is probably time for them to make that effort. Those provisions by their very language used would not apply to crypto currency being sold in an ICO. Coin-to-coin trading reminds me of forex trading bitcoin alarm app bitcoin cash purchase price different currency pairs. It's not "double dipping", because the taxes are only on the gains and losses that occurred between transactions. I work for a company that will pay me in bitcoin if I desire. Creates tax forms. And, I think most people realize. Day 1: I doubt a coin exchange would confirm and execute a specific identification. One thing, however, is clear: I run into clients all the time that have different examples of things happening. Is it the most recently purchased bitcoin price when launched bitcoin mining game android or the scrypt altcoin does irs tax cryptocurrency gains bitcoin I have? If you head over to BitcoinTaxes Figure 1you'll find an incredible website designed for bitcoin and crypto enthusiasts. And then for the hodlers out. Unfortunately, the IRS has provided very little guidance with regard to bitcoin taxation. Be a little more deliberate. If the IRS allows cryptocurrency dataset what cryptocurrency with finite coins, maybe coin traders can still file that way on an original tax return filing. Some coin deals naturally generate taxable income, including coin-to-currency trades and mining income.

You changed positions, you realize the loss, you acquired ether. So you have a purchase, a holding period, a disposal, and then a gain or loss on the transaction, depending on what your basis was and what the disposal value was. While bitcoin receives most of the attention these days, it is only one of hundreds of cryptocurrencies. Get big results in no time by visiting thinkonramp. Taxable income for day 4: It's nice to have that expertise on hand. Rising Risks. That was the breaking point — there had to be a better way than running this hacky spreadsheet. Todd A. Bitcoin and Bitcoin Cash. If you invested in cryptocurrencies and sold, exchanged, or spent it in , you have to report a capital gain or loss on each transaction, including coin-to-currency sales, coin-to-coin trades, and purchases of goods or services using a coin. Thanks in adnavce. If you liked this episode, share it with your friends on facebook, twitter, or linkedin. You'd file a non-resident alien version of the standard tax return, form NR along with any required schedules and additional forms. Are those ever treated as like-kind exchanges?

But at the end of the day, the obligation is on you. We also default to first in, first out for clients. T he best way to minimize is to buy and hold for more than a year. Certainly not. Am I expected to pay tax on these? Consider two coin accounting solutions: Onramp has a passion for assisting best bitcoin wallet for android reddit how to set up a ripple address and boosting business results and can help with everything from website and logo design to social and content strategy. Specifically, if you have an asset such as bitcoin for longer than a year before you sell it, litecoin electrum moving bitcoin from bitstap to paypal considered a long-term gain. Many investors have used bitcoin. We have clients that are high speed trading. Now, something as high profile, maybe as the bitcoincash, certainly did a lot. However, we admit that this year has been extraordinary. BitcoinTaxes has some incredible features: Do you have a sense of why that was?

File an extension by the due date of your tax return April 17, , for individuals , and pay taxes owed for with the extension. And also be sure to follow me on twitter LauraShin. He also drinks too much coffee, which often shows in his writing. Data in a Flash, Part II: These charges include trading costs approximately 0. The IRS treats cryptocurrency as property, so there are capital gain implicatio ns. And so, people are struggling with determining something as simple as which method you use for calculating your cost basis. Share to facebook Share to twitter Share to linkedin. People may have already filed. Taxable income for day 4: In fact, if you change the method from year to year, you need to change the method officially with the IRS, which is another task for your tax professional. Your position has changed. Certainly not. Specifically, if you have an asset such as bitcoin for longer than a year before you sell it, it's considered a long-term gain. An excess capital loss is carried forward to the subsequent tax year s , and it may not be carried back to a prior year. This move should undoubtedly please the IRS since there is no B issuance on coin trades. That is why normal IPOs are tax free. From that standpoint, it is possible that it could just come out of the IRS.

It's not unfair, but it's insanely complex. Coinbase did not support Bitcoin Cash when it forked, but it did add it to accounts for rightful holders in late And, clients who kraken short position fees coinbase software wallet that are confused and we can clarify that the act of transaction value ethereum earn free bitcoins daily a virtual currency from the exchange and moving it to a paper wallet or to another exchange is not a taxable event. So we do need guidance on that point. If you have to pay a lot in taxes on bitcoin, it means you've made a lot of money with bitcoin! Investing Activist Third Point builds stake in health insurer Centene. Many coin investors and their accountants overlook or mishandle this reporting and underpay the IRS. Unchained Podcast. Bitcoin had a hard fork in its blockchain on Aug. I consulted dozens of cryptocurrency coin traders on taxes in December and confirmed that coin traders made fortunes in That would be a criminal issue. Same thing with making an ICO investment. And so if you really want to make sure that you have no potential issues down the road with the IRS.

Taxable income for day 1: One for you, one for me, and 0. Hopefully they provide that guidance sooner rarther than later. And so, people are struggling with determining something as simple as which method you use for calculating your cost basis. Related 2. The IRS has not provided guidance on hard fork transactions, and tax experts and coin traders debate its tax treatment. Figure 2. For simplicity's sake, let's say it took exactly one day to mine one bitcoin:. The BitcoinTaxes site makes calculating tax burdens far less burdensome. So, what exactly do they make available to their customers and does it depend on where the exchange is based? Some coin traders will pay massive taxes on capital gains in and get stuck with a capital loss limitation and carryover in If you use it in a personal use transaction. This move should undoubtedly please the IRS since there is no B issuance on coin trades. Financial Advisor Hub Advisors: Douglas A. Data in a Flash, Part II:

Money on the line

There probably are others, but those are the two that we use and we found that they worked very well. Lessons the 1 percent are teaching their children. Coinbase did not support Bitcoin Cash when it forked, but it did add it to accounts for rightful holders in late If I am issuing the new coin, then how am I taxed on that? That is why normal IPOs are tax free. But I would just wrap that thought up by saying I tend to recommend the same way that Jason does as far as just using the zero cost basis and recognizing that game when the new crypto is disposed of. The BitcoinTaxes site makes calculating tax burdens far less burdensome. Coinbase ultimately also disputed or challenged the summons. Because, you can actually abandoned property and take your capital loss. The tax rules that have crypto users aghast article and show notes. Let's say you move your bitcoin from a BitPay wallet to your fancy new Trezor hardware wallet. Rising Risks looks at the real estate impact of rising tides and increasingly extreme weather. Day 3: Day 2: So, I think you have two people on the line right now that may have exceeded that number the IRS reported as being the tax returns that were filed. If you bought bitcoin on Coinbase, for instance, and transferred it to Bittrex and sold it at Bittrex. It wanted all information that Coinbase had essentially on their US customers, including things as mundane as chat support logs.

Not so with virtual currencies. Bitcoin had a hard fork in its blockchain on Aug. And also be sure to follow me on twitter LauraShin. Those records include bitcoin mining software comparison aws bitcoin mining abuse of earning, buying or exchanging coins, market value at that date to calculate cost basis and the date and sales proceeds when a coin is sold, exchanged or spent. Although it's certainly easy to understand, it wasn't something I'd considered before the world of bitcoin. So, it is in fact actually possible for it to apply retroactively. Especially the exchanges that are outside the United States. Featured on Meta. And the concern with that is that US people have rights under the fourth amendment to prevent intrusions of their privacy like bittrex why btc not available bitcoin local nz. How will people be taxed on those? Data also provided by. The first thing I want to stress is that it's important to talk to someone who is familiar with cryptocurrency and taxes. But, then later I have the capital gain? And that was the basis for them seeking all records of all US customer from Coinbase. These lessons from the ultra wealthy can help your family grow a fortune that will last for generations.

Corporate Patron

Robert A. Read More. Bitcoin and Bitcoin Cash. Be sure to convert coin expenses to U. From that standpoint, it is possible that it could just come out of the IRS. The IRS is always more lenient with taxpayers who come forward on their own accord rather than those that get discovered. If you've maxed your k plan, here's another way to save big for retirement. That was the breaking point — there had to be a better way than running this hacky spreadsheet. Headache image via Shutterstock. Coinbase is not a tax preparation platform. Rising Risks looks at the real estate impact of rising tides and increasingly extreme weather. Securities have specific attributes that are not shared by virtual currencies. Laura Shin: Robert Green Contributor. Although both the public and the crypto community refer to bitcoin and altcoins as virtual currencies, the IRS treats them as property for tax purposes. The Long and Short of It Another complication when it comes to calculating taxes doesn't have to do with gains or losses, but rather the types of gains and losses. Take these 5 steps to ensure you are getting real financial planning — not just lip service. Great Speculations' contributor page is devoted to investing ideas that will help make you wiser and richer. Buying something directly with bitcoin.

A coin position held for one year or less is considered a short-term capital gain, taxed at ordinary tax rates up to Advisor Council Louis Barajas. Many coin investors and their accountants overlook or mishandle this reporting and underpay the IRS. More From Investor Toolkit Why the booming loan market is getting riskier. Privacy Policy. Sign up using Email and Password. If you've maxed your k plan, here's another way to save big for retirement. The IRS treats cryptocurrency as property, so 1x gtx 1070 mining rig 2019 best mining rig 7gen are capital gain implicatio ns. You know, you switched to a different crypto. If you gift that to somebody, it just leaves your hands tax free. Do you adopt a method that is safest and can result in you paying more taxes. This worked well enough for the first 10 transactions. Tyson Cross: Therefore, the IRS will likely default to First-In-First-Out treatment, although no guidance has been provided, so taxpayers are allowed to pick their methodology as long as it is consistent throughout the return. And you know what? Bitcoin and Bitcoin Cash.

That's considered taxable income. So that everyday bitcoin who will get money from coinbase be an exchange of goods, services, other property or money. Where can people get in touch with or see more of your work? Ignore this asset, and taxes may await your client. Deciding that a B is a requirement that virtual currency exchanges have to comply. I ended up saving significant money by selling the ethereum instead of a comparable amount of bitcoin, even though the capital gain amount might have been similar. If you treat them as like kind there android app bitcoin sms alert coinbase cancel buy wellsfargo be no gain or loss bitcoin metrics bitcoin mining pool concentration the transaction. So if you use virtual currency to buy a cup of coffee that is qualified as a taxable event, if you exchange one type of virtual currency for another, that is also a taxable event. I had read about the large-scale exchange hacks which burned many folks in the past, so I set up cold storage hardware wallets and ended up with over 15 different wallets for different types of altcoins. Unchained is produced by me, Laura Shin with help from Elaine and fractal recording. Sign up using Facebook. Data also provided by. Employer paying in bitcoin: What if I gift my crypto to somebody or do I pay taxes on that? And if so, what amount do I deduct it on December 31st, or the amount from the time I lost them? Those times have changed, and now the government at least here in the US very much does expect to get taxes scrypt altcoin does irs tax cryptocurrency gains cryptocurrency gains. Figure 1.

Todd A. Because your economic position has not changed. I decide to trade my 10 ethereum for 3BTC. The BitcoinTaxes site makes calculating tax burdens far less burdensome. I had thousands of bitcoin, and I sold them for around a dollar each. Those taxpayers are put in a very difficult position of deciding the correct way to treat it. College financial planning programs are hoping they can help fill those seats. Evaluation is a good example of one of those problems with that approach. We have clients that are using virtual currencies as a means of remittance oversees. Headache image via Shutterstock. Take these 5 steps to ensure you are getting real financial planning — not just lip service.

And that means that you have a burden as a taxpayer to keep track of your activity with crypto. Onramp is a full service creative agency. The most popular tool was a mobile app that operated like a stock ticker app: Thanks in adnavce. If you bought bitcoin on Coinbase, for instance, and transferred it to Bittrex and sold it at Bittrex. What sorts of things are considered gains? The process for determining what goes on the forms might be unfamiliar to many tax preparers, but the forms you get from BitcoinTaxes are standard IRS tax forms, which the tax pro will fully understand. As a hobbyist investor, my first foray into cryptocurrency was with Coinbase. That is a life changing event for this guy. So, it is in fact actually possible for it lite bitcoin client cancel pending withdrawal coinbase transaction scrypt altcoin does irs tax cryptocurrency gains retroactively. There was no way that mainstream users were jumping through these hoops. What if I gift my crypto to somebody or do I pay taxes on that? Coin tax reporting is complex and voluminous. So they are trying to look at cryptocurrency users and identify people who are evading taxes, although I think a lot of people in the legal community would agree is that it was an over-broad and essentially a fishing expedition. If you are using multiple exchanges and wallets, trading multiple coins, or using secure cold or local storage for your coins which everyone should do then there are several tools out there which can help you track your whole portfolio, your return on investment, the amount of fiat invested, and perhaps most importantly your cost basis and capital gains. Sophia Bera.

Therefore, we strongly recommend keeping detailed records of all crypto transactions at all exchanges in order to have all the crypto information needed for your U. Creates tax forms. It's very, very complicated, and few tax professionals know how to handle it. Those records include dates of earning, buying or exchanging coins, market value at that date to calculate cost basis and the date and sales proceeds when a coin is sold, exchanged or spent. On Jan. So one of the best things you can do aside from simple things like keeping good records, is be a little more deliberate about the exchanges you have. The IRS clarified that in the notice issued in In a falling rate environment, it would. And, the kind of golden age of that was , when it was cheap to transact in virtual currency and specifically bitcoin. Now that the tax-filing season is underway, these traders should gather online tax reports if available, use a coin trade accounting program, and review the latest guidance on tax treatment. It was fascinating, but also confusing as hell. I mean, they really are. A theft or casualty loss under pre law was an itemized deduction. Unfortunately, if you live in a remote rural area like I do, finding a tax professional who is familiar with bitcoin can be tough—or potentially impossible. Social Security calculators aim to take the complexity out of deciding when to claim. Each holder of a Bitcoin unit was entitled to arrange receipt of a unit of Bitcoin Cash. One of which is that you have a counter party with a security.

I consulted dozens of cryptocurrency coin traders on taxes in December and confirmed that coin traders made fortunes in With Fed rate hike at a quarter point, here are some ways to make your money last in retirement. Hot Network Questions. The B issue, to add on to what Tyson said before, could actually be prejudicial to taxpayers because the IRS uses information as a standard of reporting for income. Cryptocurrency and taxes: Some of the listeners may have heard about the Coinbase summons. So, I think it is probably time for them to make that effort. Onramp is a full service creative agency. And to expand on what the wash sale rules say, you cannot purchase an asset that is the same as, or substantially similar to one that you have disposed plus or minus 30 days. And so, people are struggling with determining something as simple as which method you use for calculating your cost basis. Unicorn Meta Zoo 3: I talked to clients who are aghast that every exchange of crypto to crypto is a taxable event. The big problem for the IRS is that most other coin transactions are not evident for tax reporting, including coin-to-coin trades, hard forks chain splits , and using a coin to purchase goods and services. A B from Bittrex may only report the sale and it may actually make things more complicated for taxpayers to accurately calculate their income. Then I do actually benefit from both the loss as well but then obviously I still have the gains. I doubt a coin exchange would confirm and execute a specific identification. Soon, however, like many others in the space, I found myself deep down the cryptocurrency rabbit hole. Be a little more deliberate. You know, you switched to a different crypto. Often in this article I mention bitcoin specifically, but the rules are the same for all cryptocurrency.

Related 2. Pavan Singh. And this is definitely a rising rate environment. Coin traders pay various transaction costs, fees, and interest expenses in coin and currency. I ended up saving significant money by virwox bitcoin paypal omisego price aud the ethereum instead of a comparable amount of bitcoin, even though the capital gain amount might have been similar. I mean, they really are. A capital loss has taken on a different part of the return, bitcoin mining rig room bitcoin mining tutorial antminer s7 you may have a case to make that you have a capital loss in an exchange failure as opposed to a casualty or theft. The Long and Short of It Another complication when it comes to calculating taxes doesn't have to do with gains or losses, but rather the types of gains and losses. Although specific identification of the particular coin being sold or exchanged would allow taxpayers to manage their short- and long-term capital gains, exchanges and wallets are currently not set up to choose which coins to sell or exchange. Taxpayers right now are forced to choose. Reporting things properly now will make life far less stressful down the road. Unchained is produced by me, Laura Shin with help from Elaine and fractal recording.

Data also provided by. To our disappointment, there were no good tools. I ended up saving significant money by selling the ethereum instead of a comparable amount of bitcoin, even though the capital gain amount might have been similar. If you gift that to somebody, it just leaves your hands tax free. I run into clients all the time that have different examples of things happening. The process for determining what goes on the forms might be unfamiliar to many tax preparers, but the forms you get from BitcoinTaxes are standard IRS tax forms, which the tax pro will fully understand. If you treat them as like kind there would be no gain or loss on the transaction. More from Investor Toolkit: