Overall agree with your message. I definitely agree this is fear, uncertainty and doubt - the media is citing a totally unrealistic statistic. A more realistic statistic is Coinbase IRS court case - 6% (800 returns reporting Bitcoin transactions versus 13,000 summoned). And that was before mainstream came into Bitcoin, so how can the number of filers be lower than it was for 2015?
Only tokens treated as securities are subject to wash sale. However it is the most conservative to assume the rule applies to all crypto as the IRS could release more guidance and retroactively apply it.
Also here is more information about extensions and estimating crypto taxes for the extension. Not shilling, this is a long expired post:
https://steemit.com/money/@cryptotax/need-additional-time-to-nail-down-crypto-taxes-file-an-extension
Curious what you mean by this. Isn't fungibility the basic thing you need for wash sale rules to apply? Why does security status (which is only ambiguously defined anyway) have anything to do with it?
Hi @biophil, hope this helps:
The "wash sale" rule applies to stock or securities by design of the Code Section (not just any item of property). Also, there are a certain rules that would apply only to cryptocurrencies that are deemed "securities" for purposes of the Internal Revenue Code. This could all change in the future when more guidance is issued, however I highlighted a few of these nuances in an old article: https://steemit.com/bitcoin/@cryptotax/tax-implications-of-trading-ico-tokens-impacts-to-2017-tax-season
I see, thanks. I'll take a look at the other article!