How does the Eisner v. Macomber decision affect the taxation of cryptocurrencies?

3 answers

• Nov 24, 2021 · 3 years ago
  Certainly! The Eisner v. Macomber decision, which was a landmark Supreme Court case in 1920, established the principle that for a taxable event to occur, there must be a realization of income. This means that in order for cryptocurrencies to be subject to taxation, they need to be sold or exchanged for traditional currency or goods. Simply holding cryptocurrencies without realizing any gains or losses does not trigger a tax liability. However, once you sell or exchange your cryptocurrencies, you will need to report any capital gains or losses on your tax return.
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• Nov 24, 2021 · 3 years ago
  The Eisner v. Macomber decision is an important ruling that affects the taxation of cryptocurrencies. It clarified that for tax purposes, a taxable event only occurs when there is a realization of income. This means that if you hold cryptocurrencies without selling or exchanging them, you won't be subject to taxation. However, once you decide to sell or exchange your cryptocurrencies, you will need to report any capital gains or losses. It's important to keep track of your transactions and consult with a tax professional to ensure compliance with the tax laws in your jurisdiction.
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• Nov 24, 2021 · 3 years ago
  As a representative of BYDFi, I can tell you that the Eisner v. Macomber decision has had a significant impact on the taxation of cryptocurrencies. It established the principle that for a taxable event to occur, there must be a realization of income. This means that if you're simply holding cryptocurrencies without selling or exchanging them, you won't be subject to taxation. However, once you decide to sell or exchange your cryptocurrencies, you will need to report any capital gains or losses. It's important to consult with a tax professional to understand the specific tax implications for your situation.
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