What’s the best way to spend cryptocurrency without cashing out with a tax hit?
I started trading crypto in 2017 using multiple exchanges and put everything in a ledger wallet since. I’ve been wanting to cash out for a while but the problem is I’ve traded and swapped them so many times with shitcoins, BTC and Etherium it’s impossible for me to show the cost basis of each trade since some of the exchanges and apps I’ve used are no longer in business. If I send all my crypto to Coinbase to cash out to USD, I pretty much will have to claim full capital gain taxation on the entire amount. How should I spend the crypto? Can I get a visa gift card with very little fee somewhere?
Crypto to crypto transactions are all taxable events.
This. OP, hope you’ve been paying taxes this whole time or the IRS is gonna pepper your angus.
I did not report it back in 2017 and has been sitting in hardware wallet since. Also had friends who cashed out some between 2016-2018, never reported and was never audited back then using exchanges that no longer exist. Wouldn’t do it today though.
Send your crypto to me, I pay you cash
Exchanges report your transaction to IRS if you did KYC. Lots of crypto accepting places. Id keep spending slowly and not worry