How to file tax if another user using coinbase, a family member lends you couple of thousand dollars converted into bitcoin from their coinbase account to yours? Will there be tax on this? I hope not. But can coinbase or anyone who knows help? There has been a severe loss nothing gained.
Losses in any form of tax judging from the tax jurisdiction I am very much aware of won't be as high as that of profit. For example, if one is taxed as Company and you make losses, you will only pay minimum tax after meeting certain conditions which is way lower that the established tax rate. For capital gains tax, you only pay on the gains and not losses as we have it here.
What you need to do is identify these options in your locality and enjoy it accordingly. Just make sure that you file your returns in due time because losses does not exempt one from paying penalties of late returns.
