Crypto tax calculations
I had some crypto in binance (eg: chainlink, ZRX). I moved it to coinbase and sold it. How coinbase will send me 1098 or perform tax calculations as coinbase does not know the basis cost ? I was holding these coins way before coinbase supported them and bought it using btc, eth on binance. How much tax would i need to pay as there is no accurate calculation of profit?
When you trade on Binance you are expected to report those transactions in that tax year. That txn acquisition price forms the basis for the next txn. It is very difficult and complicated. Especially before 2018 many people weren’t tracking and reporting such txns to IRS. If you have significant gains , you can file taxes with 0 basis and it won’t make a big difference monetarily. I had talked to an accountant. IRS can still question you for details for 0 basis reporting . But likely not. With all this complexity, I decided not sell and as the time goes by my basis is reducing ( percent wise) .
Binance has the most shitty customer care. I am having very hard time moving my crypto from binance to binance.us as most of coins in binance are not supported by binance.us. It will be very difficult to expect binance to give me transactions that I made in 2018 for altcoins based of eth price on that day. But lot of the transactions turned out to be lossy as many altcoins disappeared which were hot during that time. Neither Binance gave any tax document nor i reported it.
What's the point of using virtual currency if not to avoid taxes?
Ha ha !!! Even libertarians have to follow the laws
Use BearTax, using their service since 2017 for a decent amount of crypto portfolio.
how much do they charge ? are you in similar situation in which you got coins from another exchange to coinbase and selling them in coinbase to get USD.
With coupons, it was < 150. Yes, I bought them through GDAX and coin base pro, moved them to ledger nano and only moved some portion back to coinbase for cash out