<story><title>U.S. Treasury calls for stricter cryptocurrency compliance with IRS</title><url>https://www.cnbc.com/2021/05/20/us-treasury-calls-for-stricter-cryptocurrency-compliance-with-irs.html</url></story><parent_chain><item><author>brightball</author><text>Yea, what I don&amp;#x27;t understand is how something like using ETH to buy another coin should be taxed? I totally get converting it back to dollars and calling that capital gains but trying to tax conversions from one to another seems nutty to me.</text></item><item><author>mdorazio</author><text>As someone with a decent amount of money in crypto, I welcome this.  I want to pay taxes on crypto capital gains in a way that makes sense instead of trying to guess my way through it, and I also want clear rules for exchanges, pools, etc. to follow to make reporting easy at tax time.</text></item></parent_chain><comment><author>retrac</author><text>Forex is often subject to such taxes.  If the USD and CAD were trading 1:1 then if I buy 1000 USD with 1000 CAD in cash I have right now, and then immediately buy 1000 CAD worth of products with those USD, there are no taxes due.&lt;p&gt;If I buy 1000 of USD with 1000 CAD, with the expectation CAD will fall, then since my taxes are due in CAD in my case, when I sell those USD for 1500 CAD  I&amp;#x27;ve realized a gain of 500 CAD that would be considered taxable income.  But if CAD goes up and I have to sell those USD for only 500 CAD, then I&amp;#x27;ve realized a loss of 500 CAD and I could deduct it on my taxes.&lt;p&gt;Seems reasonable enough to tax currencies like investments when they&amp;#x27;re used as investments.  Any asset held in that manner usually would be taxed like that.</text></comment>
<story><title>U.S. Treasury calls for stricter cryptocurrency compliance with IRS</title><url>https://www.cnbc.com/2021/05/20/us-treasury-calls-for-stricter-cryptocurrency-compliance-with-irs.html</url></story><parent_chain><item><author>brightball</author><text>Yea, what I don&amp;#x27;t understand is how something like using ETH to buy another coin should be taxed? I totally get converting it back to dollars and calling that capital gains but trying to tax conversions from one to another seems nutty to me.</text></item><item><author>mdorazio</author><text>As someone with a decent amount of money in crypto, I welcome this.  I want to pay taxes on crypto capital gains in a way that makes sense instead of trying to guess my way through it, and I also want clear rules for exchanges, pools, etc. to follow to make reporting easy at tax time.</text></item></parent_chain><comment><author>mancerayder</author><text>The bigger problem is that the automation behind sufficient tracking to make it easier to report is missing - or was.  I bought stuff from Bittrex years ago, and I was forced to buy BTC to convert it to buy something else, Bittrex went away (and never cared anyway), so now I have some headaches to report.   I&amp;#x27;m glad my holdings were small.&lt;p&gt;All this goes away if there&amp;#x27;s automation and agreement among the exchanges.  Of course, for those with wallets, I&amp;#x27;m not sure what the solution there is.  I&amp;#x27;m guessing there should be some software one can use to track transfer times + prices and aggregate that, based on address... or something.</text></comment>