Hello, after reading the news regarding a trader in California, i’m kind of worried.
So the story goes like this:
A Californian who purchased $5,000 USD worth of ETH for $50 each in May 2017, and later put his ETH into some other ICOs. His portfolio quickly raised to $880,000 USD at the peak in December 2017. He decided to HODL and thought he could get away with “like-kind” exchange because he held all his coins and didnt put it back into Fiat. He went without filing tax for his cryptocurrency profits in the 2017 year.
I am in a similar situation like him, and i talked to my CPA last year who did my tax return, he insisted that i do not have to file tax on cryptocurrency because i can use the “like-kind” exchange excuse and because what i have invested in and reinvested was very insignificant maybe around $4~5k USD in profits by the end of 2017. Right now, i talked to another CPA and he said i have to file an extension and his rate is crazy like $200/hr. he also talks me into having a cryptocurrency Lawyer to write a letter for 5k USD for the “tax opinion.” So that he can actually start doing my amendments for 2017 tax year. I felt like this CPA is another Bitconnect (Just kidding). What are your opinions on what i should do?