Tax questions and speculation | Bitcointalksearch.org

googlemaster1

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Quote from: Zosergag on April 06, 2014, 02:32:54 PM

What do you mean by a temporary loss in order to buy back again?

Lets say at some point last year I made a purchase of 50 BTC at $515 per BTC. And for tax reasons, lets say I want to sell it for $455 currently. I could realize that loss, only to buy back minutes later to go on for the long haul again, or 1+ year.

I think big time investors probably cashed out and are are waiting the 30 days to be safe from Wash laws just to be safe, but I'm curious to get some peoples take on it and just trying to figure out what everyone else is doing...

Zosergag

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What do you mean by a temporary loss in order to buy back again?

FeedbackLoop

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Quote from: bitcointaxes on March 31, 2014, 02:41:15 AM

IRS specifically says wash sales applies to stock and securities. Sure, maybe they should, but they don't.

Hummm.... doesn't that imply that OP can actually do what he is saying?

bitcointaxes

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IRS specifically says wash sales applies to stock and securities. Sure, maybe they should, but they don't.

dentldir

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Assuming that Bitcoin is treated as a stock or a security, then wash sale rules would apply. Though the guidance didn't specifically state that it is treated that way.

Foxpup

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Vile Vixen and Miss Bitcointalk 2021-2023

Nice try, but no.

googlemaster1

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Hey guys, so, I am trying to figure this out, and let me see if I have gathered this correctly. If I play by standard investment tax laws, if I sell all my bitcoins that I have paid for with fiat from Coinbase now and realize lets say a $5,000 loss of all the ones I've paid Fiat for in the past couple months, "realized" that loss, could I then buy back April 15 at the end of 2013 and 2014 Q1 tax season in order to get a temporary tax break?

After that I wouldn't plan on selling unless it would be to realize a temporary loss in order to buy back again.

Some tax experts on the subject would be appreciated, thanks!

Topic: Tax questions and speculation (Read 918 times)