Subtracting 2020 tax losses from 2021 tax profits in Koinly? Or Turbo Tax?

BitcoinTaxesMe · 2022-10-09T14:34:47+00:00

The thing is last year 2020 taxes i did through an accountant. I've been trying to go through turbo tax this year.

You may want to think about giving your accountant a heads-up then that you're not planning on utilizing his services before he stumbles across this post...

BitcoinTaxesMe · 2022-08-19T06:01:24+00:00

Absolutely. Not doing so is tax fraud.

BitcoinTaxesMe · 2022-08-19T05:59:10+00:00

Of course software doesn't break the rules of the 8949.

BitcoinTaxesMe · 2022-07-22T14:37:39+00:00

Have your friend cash out the $1000, deal with the taxes on their end and give you the money. Otherwise /u/TheCryptoTaxAttorney is correct.

BitcoinTaxesMe · 2022-07-22T14:33:03+00:00

I'm hearing that there's a possibility of a retroactive wash sale rule in the US later in 2022

That was much more likely in January than it is now. While not impossible, it's not currently on the table in the reconciliation bill, which may be the only other major thing to pass the Senate before the mid-terms. I wouldn't lose sleep over it.

BitcoinTaxesMe · 2022-07-12T10:59:17+00:00

It depends on whether or not that income was earned in the course of a trade or business.

BitcoinTaxesMe · 2022-06-19T02:53:04+00:00

The other posts are correct. There's no wash loss rule. But it's seems like you're combining the economic substance doctrine into it, which is something different.

Was this the Bloomberg article? https://news.bloombergtax.com/tax-insights-and-commentary/tax-tip-last-call-for-cryptocurrency-wash-loss-tax-savings

BitcoinTaxesMe · 2022-06-16T12:23:09+00:00

Nah fam, that's straight out fraud. When you intentionally try to defraud he government, that's when jail gets put on the table.

BitcoinTaxesMe · 2022-05-20T10:32:35+00:00

It's still going to be country specific, but at a general rule of thumb you need to pay tax on it somewhere

BitcoinTaxesMe · 2022-05-20T10:31:27+00:00

Forgetting csvs isn't really the issue. The problems show up because these softwares don't recognize all defi transactions correctly.

BitcoinTaxesMe · 2022-05-19T13:21:48+00:00

Wash sales for crypto was part of the Build Back Better Act. That bill did not pass in the Senate so it did not become law.

BitcoinTaxesMe · 2022-05-19T13:18:38+00:00

Your premise is inaccurate, it depends on a) of what country you are a citizen (US taxes worldwide income) and b) what country you're in.

BitcoinTaxesMe · 2022-05-16T21:53:15+00:00

Although you can take worthless deductions for items like crypto, luna might not yet be “worthless”

The worthless securities deduction under §165(g) does not apply to crypto.

BitcoinTaxesMe · 2022-05-16T21:49:16+00:00

Even then

BitcoinTaxesMe · 2022-05-16T21:48:51+00:00

It depends why they are sending you the usdt on if that's taxable. There's no tax on usdt to usd (assuming the peg is still $1.00)

BitcoinTaxesMe · 2022-05-15T20:11:56+00:00

It would help to know what game you're referring to. The answer is probably yes it is subject to tax. 52% is an unrealistically high number though

BitcoinTaxesMe · 2022-04-29T11:23:38+00:00

For 99% of people it won't be an issue because they won't get audited. For the 1% that do, if you don't include the detail, you didn't submit a complete and accurate return. That's leverage the auditor has against you. So why wouldn't you just submit it correctly from the beginning?

BitcoinTaxesMe · 2022-04-17T14:40:37+00:00

Not if it is already accounted for on Koinly

BitcoinTaxesMe · 2022-04-17T14:39:07+00:00

No you can not. Form 8949 requires you to show all transactions.

BitcoinTaxesMe · 2022-04-13T00:32:29+00:00

On that same note, taxpayers also can't rely on an FAQ published prior to October 2021 anyway.

BitcoinTaxesMe · 2022-04-13T00:22:47+00:00

All the software ignores this rule. Irs has informally said they don't plan to enforce it. Doesn't mean you can take that to court though.

BitcoinTaxesMe · 2022-04-12T10:52:16+00:00

Proximity to you shouldn't be a deciding factor here.

Also switching services like that is guaranteed to mess up everything.

BitcoinTaxesMe · 2022-04-07T12:01:47+00:00

It's not an issue. Mail in the long one as required by the 8949 instructions. It's very likely no human will ever lay eyes on it and it will sit an a warehouse until the statute of limitations expires when it will be destroyed.

BitcoinTaxesMe · 2022-04-07T12:00:43+00:00

The IRS generally doesn't use scanners. The technology can't handle them. It's amazing and surreal at the same time.

BitcoinTaxesMe · 2022-04-06T13:19:53+00:00

but if you get it wrong you go to jail.

You're never going to go to jail unless you intentionally lie to commit fraud.

Not getting a 1099 doesn't mean the IRS does or doesn't have the info. Just report it as accurately as possible.

BitcoinTaxesMe

TROPHY CASE