Well, first off, capital gains are only made when you sell the property.
But there is weird middle instances where you have technically sold, but really haven't.
If you buy a house and then trade your house for another house, you did create any capital gains.
If you buy a house, and then sell that house, and buy another house, you created capital gains.
However, you are allowed to roll over money made from housing investments if done in a certain amount of time, and as long as you owned the first house for a certain amount of time.
Further, the opposite can be true.
The Infernal Revolting Syndicate can assess the value of any of your assets, and say that any trade is actually a disguised sale. This is to make sure people don't sidestep taxes by, like, selling a house for $1 to a friend.
Sooooo, the Infernal Revolting Syndicate can say you owe any amount.
And no amount of "law abiding" will save you.
Now, selling you crypto is a weird thing. Trading into USDT can count as a sale.
And then, at that point, you need all the records of all the trades that led up to that sale.
Also, the Infernal Revolting Syndicate has never made any rulings on what crypto is.
It is right now... a property, but they are trying to tax it like a stock, and what will be in the future is that crypto is a money, and there is no taxes on that.
I suggest just keeping your large holdings out of sight, and tenuously connected to you.
Two things will happen in the future.
- Crytpos will be currency (laws apply as in trading currencies)
- Everyone will stop paying taxes when they realize that not even 10% goes to where they thought they were going.
RE: How to pay zero crypto taxes this year.