my CPA lady said that it is likely if you touch any of this BGT or BCH, especially spend it, or move it to USD or even move it directly
to a diff cryptocurrency using like kind under USA law..with supposed no consequence crypto to crypto..we are talking flaky IRS here
it MAY be considered a taxable event..just moving it from BCT to a BGT or say your BCH to their wallets
the IRS hates money from the air (or gold from ground) ...see crypto mining as income..they COULD do the same with this
fork $$$ you get for your whatever blockchain fork BCH, BGT etc
that is only 1 out of 10 chance thou...but in my case if it does happen 1 out of 10 I can't afford to chance moving it or spending it at this time
could not afford the tax consequences...even if it is unlikely
the most likely thing she says if you DON'T PAY ANY ATTENTION to this paper profits falling out of the sky
they likely would treat it as a stock split..ie do nothing ..just let it sit on your BTC snapshotted BGT and BCH address's
myself at 50% tax rate this year I CAN'T AFFORD TO TAKE THE CHANCE, even if only 1 out of 10 and move this to other
crypto under like kind (no tax) or move it to BCH or BTG wallet ( maybe both a taxable event) because I could NOT afford to pay the
taxes on such...if they took (IRS) that unlikely route....w/o digging into my main BTC hoard..which would be silly (or a draw at best and I'd be BTC down)
those of you with say 10 BTC or some such ..that would be 10k of BTC or say 2k under normal 20% taxes on income if held for a year and a day
under 2013 guidelines on crypto...if you make more than 35K or so...
(ie money from sky) ..again the IRS really hates it....sell or move .by all means do so.....and get it out..if you can afford taxes on this worst case
don't be me
but me, even at only a 1 out of 10 risk of this likely happening.....I could not afford the taxes due from this money from the sky,
if it goes that way....so hoping she is correct on IRS treating it as a stock split..if I pay no attention too it..
and if you ignore it and don't touch your BCH or BGT from the snapshot..it is likely just to be treated as stock split and no
consequences....
on the other hand
the IRS still says you have to pay capital gains on your 1 buck BTC from 2010 on a purchase of a big screen TV say for
8k and you'd then owe at least 2k to IRS in capital gains at 20% (my state Minnesota adds another 8.5%) to that
so they are frigging silly on that, unenforceable idea off the bat
They also went after 4 million coinbase accounts on a witch hunt because they found 4 guys cheating...wanted all 2-4 million
info on all accounts or some such...complete overkill ..they wanted all records on everyone USA or outside USA...
now, looks like coinbase will lose, the court case and be required to give all info to everyone selling more than 20k thru coinbase
so anyway, to sum up a 1 out of 10 chance the IRS could very well screw us all and say all our FORK money is taxable...ie INCOME
like mining or a gift...and if it BTC tanks to 10 bucks ...the IRS will let us
take a 3k loss a year forever to recoup,our losses, .but until then, the IRS would still, ..in my case..if you made 120k you owe us 60k
THIS YEAR IN FULL ..no way I can eat that...talk about slaming the price of BTC down to $100 bucks guickly..can you imagine the IRS
telling a $1,000,000.00 BTC holder (100 btc) he made 100,000.00 and now owes IRS 50% (my rate) pay it up by April 1st ,2018
FML, I'd be doomed...
not likely gonna happen..but if you want to see BTC dump to 1k ..let that happen...all the coinbase whales scrambling for sure...in my boat...
so, anyway, what I've found out is..if you have too much crypto on a fork...leave it the hell alone and pray the IRS will call it
a stock split and you can sell it like 1 year and 1 day like normal mined crypto and pay 20% capital gains then (if any)
if you have a bit of BTC or so and got BCH or BTG from the snapshots....and you can afford such taxes if you cash out
or exchange to BTC or whatever...BY ALL MEANS, DO SO...just saying you get to a certain size you may run into my wall on all this, like me
For sure if you SELL your BTG or BCH to USD, that would be pure income and you'd owe IRS at least 25% in lowest tax bracket (think that is lowest)
(been a good year at 4.15 ltc to 67 buck ltc mining .however until Jan 1st 2018 I'm at 50% tax rate..thus have to be aware of this stuff)
at least the rest of this year...next year I can dump.....(never thought I'd make too much crypto and be this confused)
anyway, what I have been told so far, not that anyone really knows wtf is going on, including the IRS (no more guidelines since 2013)
anyway, get it out if you can afford the 'supposed' tax problems if it goes pear shaped by all means and you can afford eating such if it goes south (1 out of 10 chance)
if you got too much like me for that to work ..in case you get slam'd...from forked coin....well sit on my hands is what I'm doing
ignore it and hope it hangs together BTG and BCH until after the 1st of the year ..and you can do a re-look then
Not sure what to do about IRS being flaky on crypto ..congress has demanded they get some guidelines for the last 4 years with no luck
anyway, likely BTG and BCH will go back to dust coin by the time I can act on this..so don't be me.if above does not apply to you imho,
move the stuff to BTC asap is the safer bet (save yourselves)
later
brad
