Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP Plan
Is the cost basis calculated by the US dollar value of each at the time of the exchange? Or based on the exchange rate of the two currencies?Scenario:1. I buy 1 ETH for 1 USD when rates are 1 ETH/USD, 2 ETH/BTC.2. I trade 1 ETH for 1 BTC when rates are 2 ETH/USD, 1 ETH/BTC.Option 1: I’ve incurred a loss, because the sale is reported as first a sale of ETH for USD, then a purchase of BTC at whatever the cost basis between BTC/USD.Option 2: I’ve incurred a gain, because I traded directly from ETH to BTC, and the relative value between ETH and BTC has gone up.