TICK TAX REFORM: GOVERNMENT GOES AFTER CRYPTOCURRENCY
Giving you a fresh take on the new tax reform
A Bad Taste
People used to get around paying taxes on cryptocurrencies by trading it under the rules of 1031 like-kind exchanges. Cryptocurrency fell under this loophole because the IRS considered it to be “property” just like real estate. Not anymore. One word changed the whole plan,”real”.
According to the new 1031 like-kind exchange definition in the new tax law, the government has stated that this can only be designated for “real property”. Going forward all crypto trading is a “taxable event” meaning…
But in mid-December, things changed.
You noticed the price declines over the past couple of weeks so you decide to move on and invest in another Cryptocurrency.
Let’s say you feel Litecoin is going to be “the next big Crypto”.
So you trade your Bitcoin in for Litecoin.
If you traded these cryptocurrencies in 2017, it was not a taxable event.
Woohoo!
I repeat, “It was NOT a taxable event”.
The key word is WAS.
The new tax Reform that was released in December 2017 has changed the game for crypto investors.
Trading cryptocurrencies are taxable going forward.
Why is Cryptocurrency Trading Taxed?
The IRS thinks that crypto investors are trying to dodge the tax ball.
Well, the tax game is one game that the average crypto investor won’t win under new tax laws.
But if you’re above average, you can use strategy to win the game. We offer strategy sessions increase your income and reduce your taxes (legally!).
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