/biz/ - Business & Finance

>>54319359
>he KYC'd
ngmi

>>54319359
Yes, you have to fill out every last transaction. In early crypto they didn’t care so much but now the shark has smelled blood. They’re cracking down

>>54319386
>He has never made profit so he has never off-ramped
Or even more comically
>He's going to larp about using a KYC'd crypto debit card without kyc

>>54319386
It's my only way to on-ramp.

>>54319397
God damn it. Any suggestion on how to automate this DIY style? Don't plan to pay any of these tax websites.

>>54319413
seethe taxcuck

>>54319430
I suggest you quit wasting time on 4chan and start filling out your tax, it can take weeks if you are a degenerate gambler like me.

>>54319359
I didn't for 2021 since I had literally thousands of transactions, some of which I could no longer get access to after binance closed the gate on burgers for good. So even if I get audited I cant provide every single transaction, although I can prove that Im not hiding anything. I just took the mark to market value of money in -> value at EOY for all transactions that had closed to that point and reported it as a single transaction, and paid taxes on that at short term cap gain rate. If they want to bitch about that I'll just hire a lawyer, I made enough money to afford it. I wouldn't have made the money in the first place without bypassing the shitty regulations formed by your fellow regulatory agencies. You can thank them for why I went to use offshore exchanges.

>>54319430
You can import an Ethereum address into TurboTax and it will calculate your taxes for you.

>>54319514
I'm in a similar boat. I bought crypto from an exchange that exit scammed back in 2013. I have no records of the original purchase so I just have to hope the IRS will accept my $0 cost basis

>>54319504
Holy shit, weeks? Don't tell me you actually filled each transaction manually? I plan to write my own script to automate that for me. I'm not sure I'm as degenerate as you, but I'm sure it's at least 2500+ transactions.

>>54319514
Makes sense. So, how do you plan on reporting every transaction for 2022? I'm hoping there's a lazy way to do that.

>>54319533
Worst case scenario, it goes to court. You have a lawyer. If you don't have evidence of those transactions, neither do they. You did the best you could with what little you had. IRS agents screech autistically about not being able to steal everything "just cuz lmao" without any evidence. Judge says that's clearly not fair and throws the case out.

What makes the IRS threatening is the fact that they are backed by the money printer. They can lose a case and it costs them nothing, vs it costs us legal fees to form a defense. But in a court before a judge, they aren't going to be able to take away more than they should without clear evidence of tax evasion etc. More than likely they will be happy you paid taxes at all and leave it at that. They have bigger fish to fry... like actual tax evasion cases with real evidence. But again given their practically unlimited resources, if they run out of other shit to do they may fuck with us just to have something to do. It's just unlikely.

>>54319589
All the centralized offshore exchanges I used allow me to download my transaction history in .csv, so I do that. Anyone who used FTX will obviously have a problem, just like I did with binance in 2021.

The main problem is DeFi. There's so many different types of transactions besides just buy/sell. And the way prices are tracked on block explorers (i.e. real time) means you have to manually grab the price for each token at the time of transaction to properly calculate cost basis/proceeds of each transaction. You can download a .csv from most block explorers for your address and piece it together yourself by scripting it or run it through a cryptotax service. I've tested cryptotax services (single pass no manual editing) and only ever had ridiculous results. Like supposedly owing more in tax than I earned in proceeds. Regardless of how you do it, it's going to require a good deal of reconciliation. It's a pain. I'm going to attempt it, but if it seems unreasonably complex, I'll just resort to reporting all my DeFi activity as a single transaction with one aggregated P/L, and all the rest separately. Best effort reporting.

>>54319430
i use koinly

>>54319533
$0 cost basis has the highest tax burden, they’d never question you if you were to put $0 basis at the short term rate because you’d be paying as much as possible to them… there isn’t any reason to audit you at that point because you’re already paying the rate they’d try to make you pay after auditing you

8949 is for two things:
1) calculating your net tax liability
2) tracking the paper trail to prevent tax evasion/fraud

If you report an aggregated P/L for a large batch of transactions, assuming you calculated it properly, you will pay just as much in tax liability as if you reported them all segregated (assuming its short term cap gains either way). And, it's the maximum tax liability, so there's no argument that you are trying to "cheat". So that's not an issue.

But it does obfuscate the paper trail so it may leave them wondering "are there other transactions that aren't reported?". If that's your intent, that's tax evasion. But if it's not your intent, and you did the best you could, and there are no "other transactions" you intentionally didn't report, then the worst they can reasonably do is ask you for more information on that batch of transactions to verify the tax liability you reported is true. The onus is on them to prove any tax liability discrepancy vs what you reported given your reasonable effort. If there is no discrepancy, regardless of how you reported it, and you paid it on time, there's very little to argue about besides technicalities of reporting. It's not your fault that reporting taxes on DeFi transactions is so fucking complicated, given the lack of regulatory clarity. If you did your best, and the taxes were paid, you have (in my opinion) very little to worry about.

>>54319799
exactly, remember the IRS has one singular purpose: to collect taxes. If you paid the maximum amount possible, and on time, they literally cannot complain about how much you paid. They can only complain about whether or not you are "hiding" something, which, without evidence, won't hold in court and thus is a waste of time. If you never intentionally hid any of your tax liable proceeds, then there's no evidence you intended to commit evasion/fraud - and without evidence, it's going to be impossible for them to argue that you intended to commit evasion/fraud. And without being able to argue that, they can't claim you owe more in taxes than what you already paid. Because you honestly paid what you owed to the letter of the law, and that's that.

Again the only concern is that the specter of "what if" hangs over your reporting which means it could come up again someday and you'll have to hire a lawyer to explain what I just did but in legalese + provide supporting information.

>>54319703
The first step is reconstructing your portfolios cost basis from the mess that you created… once you do that you need to enter every transaction at the time you make it… I went through this back in 2017 for all the way back to 2013 and it was a fucking mess… took me over a month of sorting it out every day. I used Bitcoin.tax … simple swaps and staking in defi aren’t hard to enter but when you start adding liquidity to AMM pools it becomes a pain because you have to enter two trades for one transaction- I.e. add liquidity of Usdt/arb … you have to input a purchase of half the liquidity token you received as bought with usdt and half bought with arb … then when you sell you have to do the same thing

>>54319902
if you do make errors which is bound to happen because of how complicated crypto taxes are… keep in mind that if the difference in the error and what you reported is less than I believe 15% or something the time limit on them coming after you to pay is three years… so just do the best you can, be honest and you should be fine. Mistakes happen, lying is what gets you fucked.

>>54319430
Anon.. don't be a Yid.

the 200 USD investment is the best thing you can do.
It covers you ass with (((the MAN))) and reduces worry and time to a minimum.

also learn what HIFO-FIFO-LIFO is... it could save your gains. PICREL.

If you got DEX stuff .. you have to decide if you want to "omit" them... Stick with you KYC on/off ramp if you can.
check out coinledger (dot) io

>>54319641
>>54319703
>>54319807
>>54319902
Long winded wall of text... but not wrong.

>>54321213
Do you know how they handle the closure of Coinbase Pro?
Will the API keep my Coinbase Pro and Coinbase transactions separate, or do they merge.
I don't want to fuck up my many year cost basis by resyncing my Coinbase accounts.

>>54321213
Jesus Christ you’re gonna get fisted when they audit you. You can’t change your inventory method based on the year just to lower your taxes, you pick one method for each coin and can’t change it ever.

>>54321322
yes. CB and CB Pro API are different and are itemized separate. at least with the site mentioned.

i can take a screen shot if you really want proof.

>>54321403
no... that represents my SECOND year of Crypto filing. My FIRST was done FIFO, the second ( and subsequent ) will be HIFO... i have verified this is acceptable with my Tax professional.

taxcucks ITT, the smell of fear radiates from the stank pussies in this thread.
>t. 6 fig crypto NW, tax free since 2019

>>54321427
I don't see any reason you would lie about that, but a screenshot would definitely put me at ease. Thank you.

>>54321574
HYG.

if you haven't reported your DEXs... don't but remember there will be transactions from your fiat on/off ramp.
I fucked up that is why I am going to have to report my KuCoin.