I wanted to declare crypto tax loss in this year tax return. I lost around 1.5k (last year) and made thousand of transactions (mostly small amount btw ETH-alt coins) and transferred between different exchanges such as coinbase,binance,kucoin.
The problem is that filling all of them in tax return is hard as there are thousand of transactions. I have few questions:
1. Will IRS really check all of my transactions. I made those transactions before i reallocated to US. Can i just simplify the list of transactions and just telling them that I lost 1.5k. What is the chance that they are going to audit me?
2. Using tax software such as bear.tax cost me 60$ for 1k transactions. Is this worth it. There is a problem that i do transfer between exchange. Can they match those inbound and outbound ones? Are those tax software very easy to use?
3. I sold some crypto in 2017 and buy new in 2018 and keep some of them now. Some lost occured in 2017 which i didnt declare as i am overseas. And i still keep few crypto so i can't declare that loss for 2018 return. And it makes tax return even more complicated. Is there anyway i can simplify thing.
- Microsoft Dr. RootUse bitcoin.tax
They have a provision to import your trades using APIs and can produce a CSV that can directly be imported into TurboTax.