Declare or not declare crypto loss in tax return

Amazon kvbh
Mar 28 6 Comments

Hi,

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.

Thx

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TOP 6 Comments
  • Uber inox
    You use CoinBase? They allow exporting CSV to import into Turbo Tax.
    Mar 28 1
    • Amazon kvbh
      OP
      The problem is that i only purchased ETH in coinbase but then transfer them to binance to exchange for ALT coins and then transfer back to convert to fiat.
      Mar 28
  • Amazon refinancwr
    I used cointracking.info
    Mar 28 0
  • Microsoft Dr. Root
    Use bitcoin.tax
    They have a provision to import your trades using APIs and can produce a CSV that can directly be imported into TurboTax.
    Mar 28 2
    • Amazon kvbh
      OP
      Can it do the smart matching - transfer in/out btw exchange ? Like i buy 1eth at 1k in Coinbase and then transfer to binance and buy Trx with 0.5eth, sold it for eth and transfer back to coinbase?
      Mar 28
    • Intel / Eng
      KingBlah

      Intel Eng

      BIO
      logic design Engineer. other interests photography, travelling, hiking, exotic food, tech. travelled 30+ countries and 7 continents.
      KingBlahmore
      Yes i used it.
      Mar 28

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