HashChain in the News: Coindesk
This is the latest article in a series about crypto and taxes. Perry's insights are featured below:
First of all, investors who sold during the slump would not likely have raised enough to cover their tax liability. Perry Woodin, Chief Strategy Officer at HashChain Technology, Inc, did the math.
"Imagine an individual who purchased 1.5 bitcoins in January of 2017 for $1,200 a bitcoin," Woodin told CoinDesk. "If that individual sold one bitcoin in December of 2017 they could have realized a gain of ~$18,000. This short term gain is taxed as ordinary income in the U.S. Assuming a tax rate of ~30 percent, the tax liability would be about $5,400."
As we spoke in early April, bitcoin was trading around $6,700. Hence, Woodin said, in his hypothetical example, "the remaining 0.5 bitcoin (or $3,350) is not enough to pay the $5,400 tax liability."
We will continue to stay in touch with the reporter about the series and let you know if they have questions for any follow up articles. Link is below.
"A Bitcoin Rally After Tax Day? Don't Bet the Farm"https://www.coindesk.com/bitcoin-rally-tax-day-dont-bet-farm/