Cryptocurrency

For those who took a loss last year trading crypto, how/are you reporting it to get a tax benefit? Do we have to list every single trade?

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Losses can only offset gains right? Not a tax accountant

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likeuplifting
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Curious about this as well. Unfortunately took a realized loss this year and would like to take the tax benefit, but not really sure about what level of proof I’ll need to provide.

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Also, I believe the IRS taxes crypto as property. Your loss is a capital loss, and is either short-term or long-term depending on how long you held it for. I could be wrong though. The rules can get confusing

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Summarize the transactions by pair. Ex: BTC/usd BTC/eth. If they want detail, they know where to find you

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I’d check out bitcoin.tax. They have figured out the whole tax situation with crypto and you can import your transactions from most of the crypto exchanges. They’ll calculate your basis, gains/losses, etc...

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The answer is, it depends...

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Always shocking how little accountants understand basic tax rules. You don’t get any tax benefit from trading related capital losses other than offsetting realized cap gains

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Up to 3k

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