So, this question has bothered me for a long time. I don’t necessarily plan on selling MAID any time soon, but if some more big news hits in the next few months and MAID suddenly jumped and peaked at $10 USD, I may consider dumping some of my holdings to increase my cash liquidity.
I know the “obvious” answer is to hold on to coins for a year and sell them under capital gains, but I have a couple questions surrounding this.
A pretty good bulk of my MAID is already past the 1 year mark of being in my possession. However, I have continued to accumulate here and there during some bigger dips to add to my holdings. Are these coins fungible, such that I can simply sell up to the amount that I have held for over a year without owing regular income taxes? Or is it the opposite? Do I have to pay regular income taxes on all coins that I held less than a year before claiming capital gains on the rest?
There is no easy way to sell MAID directly for cash. The only real way that I know of, without getting into some shady private hand to hand sales deals, to sell MAID would be to trade it for BTC and then sell the BTC. Obviously, that is not ideal because of the fees associated with the trading/transferring/selling of BTC. However, I am also worried that if I were to take this approach, it would be impossible to claim capital gains, even if I was just using BTC as a vehicle to sell my MAID. What I mean by that, is, according to the IRS, I would have sold BTC that I held less than a year, thus I would have to pay regular income tax on it. Is there any wiggle room that I could argue here to get the capital gains rates on my MAID?