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?
Losses can only offset gains right? Not a tax accountant
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.
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
Summarize the transactions by pair. Ex: BTC/usd BTC/eth. If they want detail, they know where to find you
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...
The answer is, it depends...
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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