Tax legislation, Donald Trump signed in late December, the most significant changes in federal tax laws in 30 years is, but Congress missed the opportunity to clarify things for investors, dealers, crypto currency issuers and minors. The community has many questions and ambiguities; But although the tax bill does not deal directly with cryptocurrencies like bitcoin, ether and tokens issued by ICOs, it indirectly affects them.
The changes to the six provisions of the Tax Code are of particular importance: similar exchanges, collection of losses, the corporate tax rate, the deduction of corporate interest, various personal deductions and the treatment of contingent transactions. (See also Trump tax reform.)
Like nature exchange
Google's "Bitcoin Tax Bill" or variant, and most of the results are focused on Section 1031 of the Tax Code, allowing capital gains for certain property exchanges are deferred "as nature" for another similar property . The provision was originally intended for a break for farmers trading cattle, but was used for trading in commercial real estate, art and aircraft - and cryptocurrencies.
According to three lawyers contacted by some investors Investopedia at least consider cryptocurrency a sale of Bitcoin for the ether, for example, as a similar exchange, which is exempt from capital gains tax. However, none of the lawyers with whom we spoke, is convinced taxpayers treat the Crypto-for-Crypto exchange as "run the risk that the IRS is against," says Jeremy Naylor, partner at Cooley LLP. Under the new law, he continues, "Now it is clear that you can not do that." The exemption from this article has already made a 1.031 claim to "the property of the same kind", only applied to " goods of the same kind 'under the new law, which means that the crypto currencies certainly not qualify.
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The changes to the six provisions of the Tax Code are of particular importance: similar exchanges, collection of losses, the corporate tax rate, the deduction of corporate interest, various personal deductions and the treatment of contingent transactions. (See also Trump tax reform.)
Like nature exchange
Google's "Bitcoin Tax Bill" or variant, and most of the results are focused on Section 1031 of the Tax Code, allowing capital gains for certain property exchanges are deferred "as nature" for another similar property . The provision was originally intended for a break for farmers trading cattle, but was used for trading in commercial real estate, art and aircraft - and cryptocurrencies.
According to three lawyers contacted by some investors Investopedia at least consider cryptocurrency a sale of Bitcoin for the ether, for example, as a similar exchange, which is exempt from capital gains tax. However, none of the lawyers with whom we spoke, is convinced taxpayers treat the Crypto-for-Crypto exchange as "run the risk that the IRS is against," says Jeremy Naylor, partner at Cooley LLP. Under the new law, he continues, "Now it is clear that you can not do that." The exemption from this article has already made a 1.031 claim to "the property of the same kind", only applied to " goods of the same kind 'under the new law, which means that the crypto currencies certainly not qualify.
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