Gain? I disagreed with that view. Let's say a steemian last week had to declare his/and or her tax, a total income of US$ 560K, he/ and or she paid 20% or US$112K of tax, but today the same amount went down as the value of steem bearish and what once was US$560K is now US$490K total income.
That value now in a 20% tax would equal US$ 98K. Can you see my point of view? In less than a week an extra payment of US$14K for a 'gain' which fluctuate, (and honestly governments does not need this extra income from business owners) that's why, it is clearly to me, crypto must be declared as a gain only after conversion to FIAT currency.
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Actually, you'd declare the initial gain this year (for 2017 results), and any losses due to price fluctuations would be declared next year (for 2018 results). You can disagree, but you'll be putting yourself at risk of an audit, and potential fines and increased taxes, if your holdings can be identified by the IRS. Especially if you ever report crypto holdings, or exchanges report that you have crypto holdings.
Realizing the gain in a Fiat currency is not actually required. Holding a cryptocurrency is treated like property in the US. When you convert that crypto into a different crypto, or Fiat, you will realize a gain or loss from your initial investment upon conversion. That's the law as I understand it. I don't have to agree with it, but that's what it is. If you choose to not report in this manner, that's your own choice.
This is not financial or tax advice, I'm just sharing my understanding of US tax law as of the last time I checked it in early December.
Interesting @evolved08gsr . Thanks for your constructive feedback, really appreciate it. <3
It looks like @lpfaust posted something above that's a little more detailed. I'm sure there's a decent amount of information on the www about this stuff, with more detailed explanations. I need to do more research myself too on the line-by-line details and requirements.