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0 pointscharlesdm8y ago0 comments

You are only liable for CGT if you sell an asset (= realised gain).

So, if you buy a stock at $10 and it goes up to $100, your CGT liability is a certain percentage of $90 ($100 - $10) upon liquidation.

If you buy a stock at $100 and it goes down to $10, you end up with a $90 (generally carry forward, some jurisdictions allow carry backwards) loss that can be used to offset other gains.

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Taniwha8y ago

yes - but isn't that what's essentially happening here when you run your coin thru a mixer and mix it with other coin (which must have the same value) - you sell your coin and get back a new one with today's value - voila a taxable event ....

charlesdmOP8y ago

I would assume you would argue that you merely moved money (or assets) around, just like you would wire money from A to B. Moving stocks with unrealised gains from broker A to B is also not taxable.

The only person you would ever have that conversation with would be the IRS (or your local tax authority outside of the US), and they are bound by confidentially.

Taniwha8y ago

yes but that act of mixing your coin with others effectively gives you back mostly other people's coins .... what's their value if not today's value?

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0 pointscharlesdm8y ago0 comments

You are only liable for CGT if you sell an asset (= realised gain).

So, if you buy a stock at $10 and it goes up to $100, your CGT liability is a certain percentage of $90 ($100 - $10) upon liquidation.

If you buy a stock at $100 and it goes down to $10, you end up with a $90 (generally carry forward, some jurisdictions allow carry backwards) loss that can be used to offset other gains.

0 comments

Taniwha8y ago

charlesdmOP8y ago

I would assume you would argue that you merely moved money (or assets) around, just like you would wire money from A to B. Moving stocks with unrealised gains from broker A to B is also not taxable.

The only person you would ever have that conversation with would be the IRS (or your local tax authority outside of the US), and they are bound by confidentially.

Taniwha8y ago

yes but that act of mixing your coin with others effectively gives you back mostly other people's coins .... what's their value if not today's value?

1 more reply

j / k navigate · click thread line to collapse