I’m using TurboTax and I can import info from Coinbase but not Coinbase Pro (aka gdax). Coinbase info alone show gains but I’ve lost most of my money in Coinbase Pro. Do I have to import Coinbase info into TurboTax? If I do, I have to pay tax, even though I’ve lost money in crypto overall. Note: I had only put 4k into crypto and lost 2-3k. So I’m well under the 20k reporting limit. So maybe IRS will never find out if I don’t report?
Why wouldn't you report. You can carry those losses to future years. Limited to excersizing 3k/year of losses. With just 2-3k of losses it's a win
But idk how to report Coinbase Pro info if it doesn’t automatically import to TurboTax
You can do manual cap gains tax. I'd assume you just enter in the basis (what you paid) and the sale price /loss. I'm not sure if it matters if this is short vs long term capital gains loss
Use Bitcoin.tax That pulls all your trades from coinbase, coinbase pro and other exchanges as well.
Report enough to offset your capital gains. The IRS isn’t gonna spend the time to verify your crypto
Wtf 😂 This is terribly advice. The crypto exchanges have started reporting customer gains to the IRS. Following your advice is a great way to get arrested for tax fraud. Idiot.
Totally agree with root. Kind of stupid to lie to IRS, especially for crypto where all your activity is digital, and just requires a tool for IRS to track it for millions of users
Report everything, use bitcoin.tax or cointracking.info Very easy to prepare a report. Make sure you claim deduction on all losses
You get tax deduction, I did it and got more returned back than emitting the crypto loss.
"Maybe IRS will never find out" is a terrible way to think about it. Money that left your bank account is easy to trace. They started taxing crypto, so they are paying attention now. Al Capone got away with murder, but the tax man got him.
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The answer is yes you need to report both
Well you don’t need to report the losses but it will negatively impact things.