Spaceman_Spiff_Original
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November 16, 2017, 12:32:31 AM

This brings up an interesting tax thought:

If you sell your bitcoin cash for cash then you have to pay the difference between either 0 or the strike price as a profit. This is not unusual and makes sense.

However if you take your bitcoin cash and switch it into bitcoin again what happens? Technically when it split off it reduced the value of bitcoin by its value. Ok, fair enough. But if it had remained bitcoin and bitcoin went up more than bitcoin cash has isn't it technically a capital loss? Or if a gain only the differential between the bitcoin value at the time and now applied to any bitcoins sold after that time that may have been some of the bitcoin cash coins (assuming one is using LIFO, most people want to use FIFO for capital gains thus they would be screwed)?

These are the things I think about while the dryer is running with my pants in it.

Could you expand why most people want to use FIFO instead of LIFO?  I would think LIFO would give you the least amount of capital gains.