US Tax Updates and 2018 Changes? Getting Smart on Crypto

hey guys James here I want to do just alert you got to start thinking if you're in the crypto space one thing I want to alert you about is especially if you're in places that like the United States Australia Europe most countries you know we've got to start thinking about the tax part of cryptocurrency and I was talking to someone last night he said well I'm a what was the word used he said he was oh he's a libertarian constitutionalist that's the word he used libertarian constitutionalist so his view was the feds couldn't tax anything because they're not allowed to under the Constitution well that's cool but in the meantime maybe the IRS comes knocking him grabs you this guy could maybe take that view a little bit easier because he's living in Costa Rica instead of in the United States although he's American anyway I'm not not saying everything wrong or right with that with that view but here's a little article I thought I'd pass it along it's a surprise in the Trump tax reform that has just been coming out got a little surprise that might be something for you to think about if you are planning on being compliant I certainly am planning on being compliant and paying my fair share of the taxes well fair share I don't know but my share of the taxes and the tax codes getting a big overhaul as you know there was a couple of things basically what's important for you to remember is they got now first-in first-out so if you have been thinking about making some withdrawals the advice in this article which you can read and maybe get your own independent tax advice on is considered may be cashing some crypto if you've got old crypto like grace and I have some old crypto before this year maybe cashing that out and make them clear and perhaps moving stuff out of an exchange if we got it so I look at this article and then just think about it you got it you know we got about two weeks you watch this pretty quickly think about it but there was something that the guys in the Congressional blockchain caucus had proposed to try to make it easier and as it points out here unfortunately for crypto holders the crypto currency tax Fairness Act was left out of both the House and Senate versions of the legislation so something that might have been a little bit easier for us so the existing capital gains tax rates which still in the United States and this is not tax advice or legal advice or anything this is just a review of an article all right so I'm not giving you any advice I'm just commenting on what what they're saying here cryptocurrency is subject to capital gains tax according to the guidance provided by the IRS in 2014 so what they are making a point of here and again you should get your own independent advice about this but so-called section 1031 like-kind exchange where people used to be able to do was switch save between Bitcoin and aetherium or different types of assets experts are saying maybe that's not something that you'll be able to do and have the IRS agree with it again because you could what you could do is what what you want is long-term capital gains if you do something rather than short-term capital gains so what you would what you would like would be to hold on you know have your assets as a long-term capital gain and then you pay a lower tax rate so there's been a technique with by swapping between crypto currencies people could still have it look like the asset was a longer term ass asset rather than a shorter term asset and that technique looks like it's not gonna be working very well in the future so and again just from an accounting standpoint so just start thinking about this guy's first-in first-out is the accounting system for this this kind of asset so first-in first-out which means the first step you bought would be the first step that you would be treated as selling which it mean you know like for me we have some Bitcoin that I've not sold before that about a long time ago and they give an example you'd bought a Bitcoin into a thousand dollars in 2013 and another 10,000 last month and then you sold it a fifteen thousand the one you'd bought first a thousand dollar one would be the one you'd get considered to have sold so again I think maybe before some of these rules change at least for me I'm actually gonna think about following this advice I'm going to get some tax advice too but I think about liquidating some of our old Bitcoin and the other thing they recommend one thing you sell in 28 teams in other words once this new legislation comes into effect you can be treated as selling the first one that you bought so he's he is saying take it off the exchange hold it directly when you want to sell that one deliver the one you want to sell so again this actually works well with something that I was already doing which is holding some things but I might move it off the exchange and put it on my Trez or one of my own got another hard wallet as well so this expert is personally taking all those crypto off the exchanges before the end of the year so I saw that and just wanted to you know pass that along as a tip perhaps for you too consider he's this this gentleman said some traders may want to consider selling off a large chunk of their holdings before the end of the year to minimize the capital gains realized so yeah that's another conclusion here so this just a review and may saved you guys some money not saying that this is the right advice or not but did one to pass this along Uncle Sam surprise tax reform to impact crypto investors so yeah anyway that's it I'll do some reviews like this from time to time passing along information want to be of service to all of you as well so it's been useful check it out yourself get your own advice and take whatever action you think is appropriate okay and again still introduced this place where I'm at been in a global conference trade and sustainable development symposium in Buenos Aires 2017 pretty cool conference a lot of high-level and a lot of government speakers a lot of high-level business people so it's been feeding my brain my thinking I've got a very night my brain is pretty active right now and a lot of interesting discussions and we're in the famous bolsa this area maybe I'll just just show you this is this is actually the trading floor of the cereals exchange commodity exchange in Buenos Aires it's the second oldest commodities exchange in the world and they've got a big huge building here but this is actually the trading floor where they do that so actually right where I'm sitting is the central trading floor they've given it over to this conference for a week basically but cool kind of feel the vibe you see me a little excited it's not because I've had too many cups of coffee probably just I'm picking up the buzz from the trading activity that normally comes here but yeah we gotta realize what we're doing crypto were we're in this you know kind of trading commodity world as well and so get with the buzz learned some things yeah guys if you can operate in the space you got a also make it a point to become expert in all the different things if you're gonna be you know a crypto entrepreneur learn some of the tax things learn about crypto currencies learn about Bitcoin learn about trading learn about mining learn about you know all these different aspects but anyway from this very cool location passing on a little update on tax reform back in the United States alright talk to you on the next updates bye-bye

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