Oooohhhh..... Bad news for the cryptomarket. If I've got you well 2018 will be so tough for us using cryptocurrencies. Then, if the new legislation discourages transfer of wealth throughout the crypto market, which feasible actions should we take as we plan to invest heavily in 2018? Will it reduce the number of cryptocurrencies users? What about using various cryptocurrencies during exchange, for example from bitcoin to steemit or onecoin,....
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Me, tax advice? Hardly, April 15th is just a day that adds to my balance, actually, so please take this with a grain of salt.
As they wiggle, crawl and trespass their evil hands toward our pockets to continue their stealing trend, we owe it to ourselves to pay close attention to information like this post by @fonsolo so all the necessary steps to protect ourselves are made before thy knock on the door.
Thanks for the reply!
To answer your first question regarding investment options - I am unsure. My best advice would be to keep track of all the recognized gains and be prepared to pay the taxes. As tax law is not my specialty, I am unsure of any loopholes at the moment. However, I will be looking into the matter further and will let the community know if I discover any way to deal with the new tax repercussions.
As for your second question, I believe it is very possible that it will reduce the number of Crypto users. The new legislation will make it hard to transfer wealth within the Crypto-space, leaving two easier options 1) cash out and 2) hold on to the cryptocurrency you already own in the hopes it will increase in value. While cashing out will have the same tax implications as transferring between cryptocurrencies (i.e. Bitcoin to Bitshares), the tax payer will at least have the money available to pay said taxes.
Finally, for your third question. As I touched on in my above answer, I believe this will drastically stunt the use of various cryptocurrencies during exchange. Many investors will be reluctant to transfer from one crypto to another because it will force them to recognize the gains they have accumulated on the crypto they are converting.
Again, this is more specific to the US markets rather than any other markets. I hope this helps! Hopefully we will have some more insight on this through future comments/posts within the community.
Thank you so much @fonsolo @dandays. I now have a complete understanding of the article.
Happy new year to all