Topic: Short versus Long-Term Capital Gains (Read 801 times)
Maybe my knowledge is not much about bitcoin but if I observe the scheme you created this is the right step in economic management and of course this will benefit,
It does sound right. Make sure that you stick consistently to a particular accounting practice (say FIFO) and that is allowed by law.
Keep a careful record of all transactions.
Keep a careful record of all transactions.
Hi,
Here is a schematic of a Bitcoin wallet I made up, with events that caused dramatic movements in this wallet. The balance has fluctuated much due to luck, poor decisions, and just even holding no BTC, but instead all altcoins at one point. But the general trend has been up, thanks to altcoin trading, with some pretty notable peaks here and there.
By having a record of this BTC wallet, if this person decides to sell, will he or she be able to claim long-term capital gains on any amount of BTC up to peak A? If so, then any new "personal ATHs in BTC" today should also be sellable for claim long-term gains one year from now. Let's assume a cost basis of zero on everything due to exchanges being hacked and old wallets being destroyed/deleted.
Does this sound right?
Here is a schematic of a Bitcoin wallet I made up, with events that caused dramatic movements in this wallet. The balance has fluctuated much due to luck, poor decisions, and just even holding no BTC, but instead all altcoins at one point. But the general trend has been up, thanks to altcoin trading, with some pretty notable peaks here and there.
By having a record of this BTC wallet, if this person decides to sell, will he or she be able to claim long-term capital gains on any amount of BTC up to peak A? If so, then any new "personal ATHs in BTC" today should also be sellable for claim long-term gains one year from now. Let's assume a cost basis of zero on everything due to exchanges being hacked and old wallets being destroyed/deleted.
Does this sound right?
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