Legalize old bitcoin?
I have some old bitcoin.. Not even 1 whole bitcoin but with current value it's worth something Id like to cash it out, problem is, I can't track back any transactions on how I got it, If I send it to my coinbase account and sell, how can I report taxes? I assume I should report taxes right? :) Do I just use some low purchase value to calculate gain and income tax based on it? Or maybe use entire amount as if a gain and pay tax from it? Do I pay regular income, capital gain (short or long?) Little help here please Thx
You're over thinking it. Just pick a reasonable basis price based on when you think you got it and pay LTCG tax on it. The IRS can't even keep up with crypto so honestly I wouldn't be too concerned about it.
Actually just did, turns out I got it around 2018, thing is that I do remember exchanging some other shit coin for btc at that time, can I use that value at as a base?
Why not buy something for BTC directly? A bunch of stuff is available including electronics.
Hold
Hold it. BTC will be >$200k within a year.
You can sell and report that the buying price was $0
If you cash out it’ll be attributed to your income. I’d say try and get as accurate as you can to your actual purchase price. The lower the gain, the less tax you would pay. So definitely don’t use the entire amount