4 ms·
I have been dealing with a similar problem: Very old holdings that I first traded for back in 2013. It's unfeasible to record what I traded then since it goes t
by megameter 5y ago
I have been dealing with a similar problem: Very old holdings that I first traded for back in 2013. It's unfeasible to record what I traded then since it goes through a trail of dead exchanges. I've been filing them as capital gains as I trade them now, dating their purchase time back to the year I originally traded for them(thus making them long-term), and their acquisition price as $0.
Marking acquisition price on trades to $0 is consistent with how I've seen the IRS behave in the past when I failed to report stock trades accurately($1mm volume = $1mm taxable when this occurs), and since the prices have increased 1000% in most instances(I buy and hold for years, and while I traded in 2017-2019, I did not trade at all in 2020) the initial cost is easy for me to write off.
I plan to use Cointracker's reports going forward.
- tldrthelaw 5y agoThis tracks. Being transparent if you're audited will be key. You're trying to keep track of things, and trying to pay what you owe based on the information you have. Just as a heads up for other folks reading this, having a basis of $0 isn't the same as paying tax on the mined value at ordinary income rates (cap gains rate differs from ordinary income rates). Mined coins and bought coins are treated differently owing to how they're acquired.