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I have a buddy who I sent money to to buy a certain amount of Ripple. For one reason or another, I couldn't do this on my own at the time. In any case, the currency has tripled and I want him to send the ripple to my wallet. Does this transaction require me to pay taxes on the capital gain that has occurred? Or can I simple put this ripple into my wallet.
Any help here would be great. I have called around to no avail.
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Not regulated by a government does not mean that there are no tax regulations concerning cryptos. There are countries where the law requires that you pay taxes for capital gains even when you only trade one crypto into another crypto (without fiat involved) supposed the time difference between buying and selling the crypto is less than one year.
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I do not think at this point cryptocurrencies are regulated by the government. As long as you have Ripple (bitcoin or any other cryptocurrency) and not fiat (Dollar, Euro, etc.), for governments you have not gain capital (yet!). This may change in the future.
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It depends which country you're in, but the answer is Yes, you do have to pay taxes on this, more than likely.
Most countries have regulations on capital gains of all sorts, so you really need to look up your own countries laws on how this applies, but for most, all crypto transactions are taxable events and will be taxed at the rate of the conversion on that particular day, regardless of what the price ends up at.
in the USA. Im not selling the ripple. I simply just want to put it in my wallet. Of course I will pay taxes once i liquidate. Also, is he required to pay taxes for sending me ripple? – tyty – 2018-01-05T00:20:19.270
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By the sound of your question, no capital gains will be payable regardless since you will now simply just receive less ripple (the price has gone up) - unless the ripple was previously purchased at the lower price and your friend has been holding it for you.
Many countries have a view on crypto-currencies. Some consider them foreign cash and those rules pertaining to foreign cash holdings apply but, there is a range of views depending on the specific country.
The best advice will come from a local and well qualified, reputable tax accountant.
1I'm voting to close this question as off-topic because every tax jurisdiction may treat cryptocurrency differently and so it is difficult (if not impossible) to provide a meaningful answer. You should consult an accountant or tax lawyer, not random strangers on the internet. – chytrik – 2019-05-15T23:30:19.570
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Check the bitcoin and crypto tax questions on https://money.stackexchange.com/
– 4276 – 2018-01-03T23:36:23.953