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Crypto Traders & arb
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Is the IRS crackdown going to affect markets? 3 years 1 week ago #90

Will people be less excited to trade Crypto when they have to pay taxes?  See globalintelhub.com/irs-launches-crackdow...ors-pay-their-taxes/ 

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Is the IRS crackdown going to affect markets? 2 years 11 months ago #121

It depends on what parts of crypto currency they will be taxed. Generally speaking, these are considered taxable events:
Selling cryptocurrency for fiat currency (i.e. USD, EUR, JPY, etc.)
Trading cryptocurrency for other cryptocurrency
Using cryptocurrency to buy a good or service
Receiving cryptocurrency as a result of a fork or from mining

I don't think anyone would have problem if they are taxed on above mentioned points

On the other hand, the following are generally not considered taxable events and if United States Internal Revenue Service (IRS) will tax below points then it will hurt the sentiments of the crypto investors:
Buying cryptocurrency with fiat currency
Donating cryptocurrency to a tax-exempt organization
Gifting cryptocurrency to anyone (if the gift is sufficiently large it may trigger a gift tax)
Transferring cryptocurrency from one wallet that you own to another wallet that you own

In 2014, the IRS released guidance on virtual currencies (i.e. cryptocurrencies). Some highlights include:
Cryptocurrencies are treated as personal property (not currency) and are therefore taxed as capital assets
Capital gains from selling cryptocurrency for fiat currency (e.g. USD) or using cryptocurrency to purchase goods or services are subject to capital gains tax
Cryptocurrencies that are obtained from mining are taxable as income at their fair market value at the time they are received
Mining equipment can be deducted as a legitimate business expense

All in all, I believe more people will go for crypto trading even if they have to pay taxes, like they pay in any other investments.

Footnote: www.irs.gov/pub/irs-drop/n-14-21.pdf

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