Crypto folks - How do you stay on top of crypto taxes? I move coins to cold storage (Ledger) and coinbase struggles to understand the cost basis. What tools or software can be used to automate so this is not a pain to buy and sell? TC: 8BTC
If you’re stacking utxos you can calculate cost basis at block height. Your exchanges also should give you records. IRS recommends using both to prove cost basis. If you’re holding for 5-10 yrs, you’re never going to sell, so I wouldn’t worry too much, just save the paper trail. If you don’t have/lost paper trail, even better. HODL
I am holding Bitcoin for the long term but do some trading on alt coins.
Unless the exchange is reporting to the IRS, I’d not bother
I want to do things that scale. If you want to avoid taxes on crypto - good for you.
lol you report crypto on your taxes?
Do you convert gains to USD? Don’t you need to tell IRS the cost basis and prove it if needed?
Blind crowd asking to not pay taxes on crypto? When you realize profits, don’t you need to show the full trail? You never convert to USD?
You can adjust basis in the coinbase tax app.. but it doesn't impact what is shown in portfolio. Not sure how they are still such garbage for gain/loss reporting after all these years
I use Koinly. It can track wallets across chains. It still gets some things wrong but it’s the best I’ve found since I day trade shitcoins on SOL and BSC.
This looks good. For me $49 is good enough per year.