Leister

When you send it to them, it goes into your wallet that's there.

At that point, it's made available for trading.

Then there are pairs that are associated with it.

And so what the IRS is trying to do is document, all right, where all of the various trading events that could happen.

So Bitcoin to Ethereum, Bitcoin to USDT, Bitcoin to USDC, et cetera, right?

All these different pairs are avenues for transaction.

The exchange notes where all these could go.

And when you make a trade, even if you didn't profit, they're still documenting the transaction.

So you take your Bitcoin,

decide to sell it for whatever you did because you just bought it right but let's say you did you sold it because it jumped up 20 or something that's a taxable event they're documenting gross proceeds but then they said well i go to i start the exchange now from the exchange i'm going to withdraw it to a self-custody wallet and sit on it for a while let's say three months

starts pumping up again, I'm going to send it back into the exchange, same exchange.

They treat that as a taxable event because you profited, quote, even though you didn't sell it.

So the big delineation of what I just described, look it up, is they're no longer directly focusing, and they kind of weren't before, but they're really no longer focusing on a sell.

They're focusing on whether or not there was a change in value as the asset moved.

And just the transaction of it moving, they're treating it as a taxable event.

Now, the flaw of this, as I said, in my older one is just because the price is moving.

If you have not sold an unrealized loss, they're not benefiting you, right?

They're not allowing you to deduct because you had an unrealized loss.

It had to be a realized loss yet.

If there's an unrealized gain,