Declare or not declare crypto loss in tax return
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
Easy to use cryptocurrency tax software for individual traders and CPAs to manage clients and their trades, calcuate capital gains and help them prepare and file taxes
I used cointracking.info
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.
You should always report your taxes accurately, unless you really want big issues with the IRS in the future, They will find everyone that owns or have traded crypto! Coinpanda https://coinpanda.io is a great tax solution and it's also quite affordable.
You use CoinBase? They allow exporting CSV to import into Turbo Tax.
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.