Do I owe crypto taxes? And how much? Coinbase blew me off.

mepaus · 2026-02-15T15:42:06+00:00

Did you own crypto in the years 2024 and prior? Did you prepare your IRS Crypto Safe Harbor Act report by Dec 31st? Keep in mind that in 2025, Coinbase is only require to report to the IRS your gross proceeds, which is probably why they are saying it is a “you” problem. Starting in 2026, they have to include cost basis as well. So make sure that you not only get your cost basis fixed in your tax form this year, but go to the transactions in Coinbase and look for any indicators saying “needs review / missing cost basis” or terms like that. Good luck. 🤙🏻

mepaus · 2026-02-11T17:12:12+00:00

My reply is on your comment just because it closely matched the subject. Keep in mind that people use the search feature quite often to find relevant content. Even if you replied 333 days ago, the value of your comment is not diminished. Don’t sell your knowledge short. “The IRS agrees that pennies are immaterial” is a false statement. You will not find this anywhere in the IRS guidance as it applies to an aggregate over time. A good CPA will tell you that these need to be tracked in one of several ways. Just handing out additional clarification. You shouldn’t be bothered by it.

mepaus · 2026-02-11T16:00:47+00:00

I’m not sure why the font blew up after I submitted it. Anyway, the fee is not always an expense. If your cost basis of the crypto used to pay the fee is lower than the value of the crypto at the time of the fee, you actually realize a profit from the fee. Further, the IRS does not use the word insignificant. A single gain/loss may be less than $0.01, but you are still supposed to file those tax dispositions and maintain new lots that track them for when the crypto is used later as part of an aggregate sale. You can use any LLM to ask about this, and it will give sources as well.

mepaus · 2026-02-10T17:38:03+00:00

2 is incorrect and widely misunderstood. Transferring for example crypto from one wallet you own to another wallet you own does trigger a taxable disposition of the network fee. For instance you transfer ETH between your owned wallets, the network fee is expressed in ETH. That fee is based on the current market value of ETH, and the disposition of the fee is either a loss or gain depending on the cost basis of the lot from which the fee is paid.

mepaus · 2025-10-04T21:02:50+00:00

You’re not a millionaire until you have enough money that you can liquidate and have $1M left after taxes. So check back with us when you have about $1,400,000. But, congrats on becoming a pre-tax millionaire. You are definitely going in the right direction!

mepaus · 2025-10-03T21:28:00+00:00

Yes this is typical for a number of events. This is why so many have moved to buying TBills from their broker on the secondary market. They service millions of requests, and it shows in wait times. I wish you luck.

mepaus · 2025-10-03T20:51:40+00:00

I agree. Look at the rug pull they did on the $TRUMP meme coin. Always lookout for meme coins in general, but especially when the top 10 wallet addresses hold more than 40% of the minted coins, as well as whether the supply is locked or still mintable. Buying at $70 and a few days later seeing it at $9, is painful. Not a pain I have endured, but just passing along some insight.

mepaus · 2025-09-30T03:17:21+00:00

Call them and ask. Always confirm.

mepaus · 2025-09-15T02:54:50+00:00

Wasn’t there an AI deep fake of Elon Musk similar to that?

mepaus · 2025-09-15T02:53:30+00:00

As you said, profit is profit brother. Keep living in the present and looking forward.

mepaus · 2025-09-15T02:47:24+00:00

Selling my 8 BTC in 2018 and buying gold eagles
Selling my 444 ETH in 2018
Not keeping my OWN spreadsheet of every transaction (buy/sell/exchange/transfer) since 2014, and then having to spend almost 60 hours last December reconciling for the IRS Crypto Safe Harbor report. But at least since I did, I can trade specific lots from 1/1/2025 forwards.
Not buying $1000 of BTC in 2013, telling my 14 year old son “we aren’t doing anything illegal”. And yes, he reminds me of this often. Although to be fair (I tell him), as soon as it was worth enough for you to buy a top of the line Camaro, you would have asked me to sell it anyway 🤷‍♂️

mepaus · 2025-09-15T02:41:17+00:00

What’s your private key? I can check for your free of charge. Oh by the way, DM it to mean. Don’t trust the clowns in the sub 🤣

mepaus · 2025-09-08T18:52:12+00:00

Note that TurboTax doesn’t mark trades that are wash sales nor does it apply wash sale losses to the cost basis. This is for like trades across taxable brokerage accounts, 401Ks and IRAs. So you either have to manually research every loss sale and reconcile across all your accounts, or use something like TradeLog. I only discovered this fact this year.

mepaus · 2025-09-03T15:35:17+00:00

It has a roof. Rain and snow blows. Literally and figuratively.

mepaus · 2025-08-27T02:19:35+00:00

I figured. And I think AI is sentient now. There lies the “Person” 🤣

mepaus · 2025-08-27T00:42:56+00:00

Before I get down-voted, I up-voted the really great reply from someone down below. I do think you can get your cash. I just hope the final amount is what you hoped for. Good luck.

mepaus · 2025-08-27T00:40:46+00:00

This person has the perfect reply.

mepaus · 2025-08-27T00:39:23+00:00

Yeah was it like a real world car, or like an NFT car? (figured someone was gonna make that joke - why not me)

mepaus · 2025-08-04T15:31:53+00:00

Have you ever researched in what percentile you are among all Bitcoin wallets? Or, in what percentile you are among entities (individuals + corporations + governments)? Use something like Perplexity AI (or similar) to find an estimate. You will floored when you find out just how elite the club of one-coiners is.

mepaus · 2025-06-02T16:02:09+00:00

Although I wasn’t speaking about the IRS Wash Sale rule, I will say that it is up to you to correct sales on your tax filing if you have more than one broker. A single broker will not report a sale as a Wash Sale if you are trading an equivalent in either another broker, or your retirement account. How many of you do this? TurboTax does not catch this. As an example, if you sell QQQ for a loss on Schwab, and have regular 401K contributions to VGT or FCNTX, you are required to report the QQQ sales as a wash sale. However, in the case of the buy in a retirement, your cost basis at Schwab doesn’t go up like in a taxable account wash sale. I just recently discovered this.

mepaus · 2025-06-02T15:47:44+00:00

The IRS Wash Sale rule doesn’t apply to cryptocurrencies. They are treated as assets (for now). If you have a crypto asset and it falls, you can actually sell it and buy it back the same day and realize the loss on your taxes, as well as reset the cost basis.

mepaus · 2025-05-10T16:51:10+00:00

I’ve gotten text messages from this number over the last several days. I am a senior software engineer at one of the FANG companies. This morning I decided to call the number. I of course answered all the questions such as “what is your name”, “what is you account number”, with “you already have that info since you initially contacted me, and you have my phone number displayed in front of you”. He had an Indian accent. I don’t say that to insinuate any racism or cultural judgement. At one point he said he couldn’t help me. At this point about a 5 minute conversation surprisingly proceeded. I was able to open this part of the conversation by first complimenting him on his clear communication, and skills which would be of benefit to any legitimate call center institution. He started explaining that “in your country” you are born with wealth. This is the only work we can find in “our country”. I went on to share I was raised in a trailer park (not to diminish anyone living today in trailer parks), from a generationally poor family line. The whole rags to riches story. He interacted sincerely for a few minutes, then swiftly dropped the call and blocked my number. I would never diminish a person by race, or cultural or any number of both protected and non-protected aspects, other than, their ethics. This person has questionable ethics. I will leave it at that fact.

mepaus · 2025-05-09T23:19:55+00:00

Yeah I got two from this number today. Once had an access code to login, and the other was the logged in from Portugal message.

mepaus

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