re: Official CryptoTalk Thread

I have a question regarding taxes.

Hypothetically, lets say your day 0 of crypto trading began in tax year X. If, on December 31st of year X, you cash everything out to fiat, you should be able to pay capital gains on whatever profit you made during the year using a simple calculation of what fiat you put in vs what you got out because all of your gains/losses for the year are accounted for in that final cash out.

If, on Jan 1st of tax year Y, you then cash back in less whatever you need to pay taxes with and profits you want to keep, you have essentially "reset" your tax calculations for that year.

is there anything wrong with this plan?

seems like a good way to avoid the "I turned BTC at 20k in dec into alt coins which are now worthless, now I owe taxes for selling btc in dec that I cant get back because my altcoins suck" phenomenon