US Tax Bill Impact on Crypto Traders
The new US tax bill has been really controversial for a number of reasons.
Something that is likely to impact Cryptocurrency traders is the closure of a loophole that existed in section 1031(a)(1).
More particularly, it allowed traders to treat cryptocurrency trades for other cryptos as a "non triggering" tax event. This meant that it did not have to be reported for tax purposes. Traders only had to pay capital gains on the taxes if they held the crypto for over a year and then converted into Fiat.
Now, with the new wording the loophole no longer exists. What does this mean for short term traders? Higher tax rates and more reporting? Any thoughts?