"When asked how it would work, Polis said Colorado is looking for crypto companies to act as a transactional intermediary, to accept and convert cryptocurrency payments on behalf of the state.
For now, payments can only be made through the PayPal Cryptocurrencies Hub."
So Colorado is actually requiring payments in US $. The fun part is the federal IRS will get involved as well. Crypto-currencies are deemed to NOT be “money”, so there may well be federal AND state tax consequences as a result.
I have never claimed, stated, or insinuated that all cryptos are the same. So I don’t know how to provide a link to something I never said.
According to the search function, I have mentioned beanie babies exactly one time on this forum. And that was in the context of supply and demand. Specifically, I stated that even though beanie babies are scarce, the price still dropped.
I have no idea why you find that statement to be so controversial.
It is not controversial and it does not matter who said it or which high flier became yesterday’s news…BTC and Eth are a different two animals. The word on this board has often been more or less they will go away ie the beanie babies. That is not true.
Thanks for bringing that up Jerry. So if you bought crypto at a higher price, the state of Colorado will allow you to pay your taxes with Crypto. Then, since there isn’t a wash sale rule for crypto, you can buy back the crypto the next day. Also since you sold it off at a lower price you can use the loss on your federal taxes to reduce your taxes.
Ahh so you didn’t say that crypto, like commodities, is set by supply and demand. But in your mind you conflated that with Beanie babies? Maybe you should have just stated the former.
I find it funny when anyone starts comparing something to beanie babies. It’s a weak argument and never allows anyone to understand anything about what they are discussing. If I would have believed you I never would have understood the difference between Bitcoin and Ethereum. I would have never read about the Ethereum platform and all the other project being built on it. I never would have realize that Colorado was allowing crypto for the paying of taxes. Because if crypto was like beanie babies I never would have looked further into it since beanie babies do not interest me.
Right Leap1 especially with the burning of the Ethereum. It does cut down on the supply but Ethereum does not have a maximum amount of coins that can be mined. That number is unlimited.
Price (in US $) offered to YOU by the exchange (in this instance, Paypal) is your selling price (plus whatever fees are tacked on). Your BASIS in that crypto is what you will have to document to the federal IRS in order to claim a gain/loss on your taxes.
Ask the IRS. Unless it is stated elsewhere in the law, it is possible the losses could be limited. Should the profits also be similarly limited? LOL !!!
If bitcoin gains/losses are reported on Sch D, they are capital gains/losses and are limited to -$3k against ordinary income. But you can offset all other capital gains. So if you have $10k gains from stock sales, and $20k losses from crypto sales, you can wipe out the $10k stock gains, and you can take $3k against ordinary income, and you carry forward the remaining $7k loss to future years.
That was an eye opener I did not expect. I do not know the terms or rules involved but corporate capital losses affect the tax returns of the corporation differently than individual return treatments.
Right, Saylor is a big Bitcoin bull but by selling he picked up those losses and I wonder how much taxes Microstrategy will have to pay over the years? Then when their are not any rules he bought back immediately, now wash rule.
Cameron Winklevoss spent the holidays groveling before Genesis Global Capital head Barry Silbert begging him to return the Winklevi’s customers’ $900 million dollars in Bitcoin.
Silbert doesn’t seem particularly motivated to do so. This is the future of finance.
Thanks, that explains a lot. DCG is the parent company of Genesis and Greyscale. So the parent company borrowed money from Genesis than stopped trading on Genesis. DCG must have learned a few tricks from Lehman and Wells Fargo.
Hmmmm….simplifying it a lot, it looks pretty basic. The Gemini entity borrowed short (from customers) and lent long (to DCG)- a pretty standard finance arrangement. Gemini’s caught in a liquidity problem. They’d like DCG to repay their long loan early. DCG doesn’t want to (and probably doesn’t have any legal obligation to, and very well might not be able to).
The Winklevii are trying to make this situation seem like it’s DCG’s fault - but it seems to me that this is their failure, not their counterparty’s.