Ask /r/Bitcoin: how should I account for selling BCC on my taxes

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In many areas, someone who sells or spends bitcoins has to pay capital gains taxes on any increase in value in those bitcoins between the time they were bought or received and the time when they were sold or spent.

This seems mathematically simple provided you keep good records: using first-in-first-out (FIFO) or last-in-first-out (LIFO), you compute the difference in prices and, if positive, declare it on your taxes as income from investments.

But how should one compute investment income from selling the BCC portion of a split bitcoin? For example, if I bought 1 BTC at $1,000, sell 1 BCC at $100, and keep the remaining 1 BTC at any price, what is my gain?

The simple answer seems to be that it's $100 gained from selling the BC, but I'm worried that by selling my BCC, I'm actually legally entangling the market prices for both my BTC and BCC—so if the BTC price is $2,900, my total gain is actually $2,000 ($2,900 + $100 – $1,000). For anyone who bought bitcoins more than a couple months ago, having to pay paper gains on the current BTC price could make taxes next year rather painful.

Friendly advice (not professionally binding) is appreciated.

submitted by /u/harda
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1 CRYPTO

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Ticker

1 BTC = $59640.93 USD  (via Coinbase)
1 ETH = $2142.90 USD  (via Coinbase)
1 LTC = $250.66 USD  (via Coinbase)
Quotes delayed up to 2 minutes.

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