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I would suggest contacting a tax-accountant in your jurisdiction if you are unclear of your obligations. Every place will have different requirements.
by Frogolocalypse 9y ago
I would suggest contacting a tax-accountant in your jurisdiction if you are unclear of your obligations. Every place will have different requirements.
- dmoy 9y agoK I'll ask my CPA in a bit
- dmoy 9y agoOk yo, at least for US jurisdiction you would need to report those individual bitcoin sales as taxable cap gains events (either loss or gain depending on the cost basis). Does whatever exchange you're using make calculating cost basis easy? Like do they send you an 8949 or all the details easy to fill out? Otherwise that sounds like a huge pain to get everything straight for every purchase (even if it's just daily sales). If the exchange makes it easy it might not be that bad. My 8949 / sched D already got like dozen+ entries on it, what's a few dozen more? lol. But if the exchange doesn't provide easy cost basis and makes you calc it on your own, ugghh no thanks. They also went into some detail about wash sales, which is going over my head. But yea this sounds like it would vastly complicate your tax preparation. Unless you just don't report it and cross your fingers that you don't get audited I guess? Of course, this is now 3rd hand from a CPA, and only applies for US federal taxes.
- Frogolocalypse 9y agoI don't live in the US. Good info to have in the US if you do though.