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RE: IRS Tax Rules for Cryptocurrency in 2018

in #crypto-news6 years ago

If I bought 1.0 LTC at $50 in august and store it in wallet A
I also bought 1.0 LTC at $350 in December and store it in wallet B
I send the 1.0 LTC from wallet B on December 31st to an exchange and sell 1.0 LTC for $225
DO I REPORT A LOSS OR A GAIN FOR TAX PURPOSES.
I ask this stupid question because lets apply this to there is no wallet B. Instead wallet A has both LTC's bought.
Which LTC was sent? was it a mixture of both? In 2018 should I start figuring out which crypto was bought most recent so I only use the most recent to trade with? Is that even possible in a single wallet?

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Wallet B was a lost, even though it was more than wallet A, how you keep track of that can be difficult, My exchange however does list all my transactions, figure out what transactions were Gaines, and what was a lost will be heard. I would guess, this is where people will fudge a bit, because it would be hard to prove which is which. Reality is, smaller transaction will not be examined, at least for a while, transactions above I think $9k will likely have to be reported by the exchanges.

However, I think would will come of this, is countries setting up untraceable/ Tax free exchanges. and a continued, attempt to block them.