How is tax handled in this case?

Hey everyone, Here's a situation to think about: Fiat example: Person A does $1,000 worth of work for person B. B pays A $1,000. B then records that $1,000 as a loss. A pays income tax on the $1,000. Crypto example: Person A does $1,000 worth of work for person B as well. Instead of just getting cash, A goes to the altcoin market and buys 1,000,000 $hitcoins for just $1 in fiat (pick any useless coin). B doesn’t have any crypto, so he heads to exchange X and buys $1,000 worth of Bitcoin (let’s say that’s 0.1 BTC). This exchange reports to the IRS that B acquired 0.1 BTC for $1,000. B decides to trade that 0.1 BTC with A because he thinks: If he gives A $1,000 in fiat, that cash is gone forever. But if he gives 1,000,000 $hitcoins instead, maybe one day they’ll soar in value. B can tell the IRS that the $1,000 spent on the 0.1 BTC was investment money that was then reinvested in crypto within 6 months. Or B could sell off those $hitcoins and claim the same loss as he would have if he had gone the fiat route. A gets the 0.1 BTC, stores it in a mobile wallet, and uses it at a coffee shop that accepts BTC. A doesn’t report anything to the IRS since the BTC isn’t being turned back into fiat. I’d love to hear your insights or corrections on this. Thanks!

Seek an accountant. There's various tools online where you can calculate capital gains, and income tax together, but honestly just get an accountant to do the math for you as they are less likely to make mistakes.  Any advice on here would be greatly inaccurate because each jurisdiction has different tax laws. For example, some countries have tax brackets which allow you to earn a certain amount before having to declare income tax. So, its just better to seek professional advice from an accountant in your jurisdiction. Tax can be extremely complicated, and that's just with fiat. When you add into the equation the different laws on cryptocurrencies then its becomes even more difficult. There's also a lot of misinformation on the internet regarding tax, and a lot of users probably think they don't need to file tax at all until they've converted it into fiat, and I do believe this was the case for a long time, but a lot of countries are now treating it as money, and therefore its subject to income/capital gain tax.