Bottom line, the IRS cares most about total minus total. They do prefer trade by trade accountability but if you can break it down to monthly or quarterly profit/loss, you can get away with it with minimal shit
How does this work?
Parker Watson
Nicholas Clark
Fuck this country.
Jonathan Stewart
>most CPAs will tell you it works based on FIFO so the first btc goes out.
All you need to do to escape this is have multiple wallets.
Daniel Morgan
I'm two exam sections away from applying for my CPA license (REG and BEC).
Daniel Peterson
bro you have no idea how many tens of thousand or hundreds of thousands of crypto people are in the SAME exact position. We weren't keeping track of our trades, many of the exchanges we were trading on don't even exist anymore so there is no way of getting previous trade data. if we did nothing meaningful with the money inbetween trades it makes no sense to pay tax on a huge profit you made in december that you more than lost in january but can't write off that much of a loss for the year before because it makes no sense. I will do my best to pay taxes on the money that gets sent to my bank account to actually be spent on stuff but i already know its completely impossible to make sense of my tens of thousands of trades over the last 5 years to go back and figure out the pnl along the way. It's easy to keep track of your pnl if you just write down your trades as you make them,which is what i've started doing but 5 years of mindlessy trading shitcoins not keeping track fuck that there is absolutely no way and the IRS probably knows that. They did not make this totally clear until the tax bill in December 2017 i believe so really they should not expect much. many people say it was obvious beforehand but as a total idiot 18 year old when i first got into crypto i had no idea how capital gains tax work or what it even was.
Eli Ramirez
I don't think that's gonna fly with the tax agency. People would create separate wallets on for each coin they want to trade without triggering tax obligations on previous purchases
Bentley Richardson
only niggers pay taxes on btc
Carson Sanders
If I buy a BTC at 1k and put it into a wallet and then buy a BTC at 3k and put it into another wallet. If I sell the BTC in the second wallet how can they try to tax me on the first one?
Cooper Campbell
Oh shit
But if you write down your trades then won't the government require proof of those trades too? Like you can't just say you have it written down that you bought BTC at 1k let's say and sold at 4k
Gabriel Cooper
Not looking forward to this tax season.