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RE: Legal Precedent? IRS Will Not Tax Unsold Tokens?

in LeoFinance3 years ago (edited)

This is a very interesting case, especially for folks around the HIVE chain.

Basically, the decision makes the creation of new coins from other coins (AKA staking inflation) a non-taxable event.

So let's say you take LEO, stake it into LEO Power, then do activities to create and assign new LEO it's not a taxable event until that new LEO is sold for something else. Sounds an awful lot like curation.

Also, the like-kind exchange argument never made any sense at all. In a like-kind exchange a very key element is you don't get to do the transaction or handle the money. On top of that, the Trump tax reform (TCJA) specifically limited like-kind exchanges to real estate only.

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