Ripple (XRPUSD)

[KC01905]

No problem. The three things I find most fascinating are:

1. First in first out rule of trading. Which means if you’ve been accumulating one coins for years as you cash out … the difference goes against your first coin and so on and not based on cost average. That basically means you need a running tab on your trade from day one.

2. According to the airdrop … the initial drop is considered taxable income but only when you have full control of the asset. So even though CPRX hit my ABRA account at $2.14 two weeks ago … I cannot buy sell or trade that asset as a US user until December 21. That’s a game changer because it dropped like a rock.

3. The initial drop is taxable income but should you trade out of it you only owe short term capital gains for gain or loss of the coin at the time you trade into. So in the case of VGB. Let’s say it’s released at $40 that’s a total of $40k income. Rather then seeing what happens … if you trade immediately into something more stable like XRP you may owe zero on the trade or if you trade our at $35 to XRP you can take a $5k deduction on the trade bringing your taxable income to $35k and not the original $40k. Is that how I’m reading that? Maybe get it into something stable immediately and then decide if you want to buy back in or not when the dust settles.

Thoughts?