Funnily enough I've just spent the last two days speaking to my accountant as its tax return time here in the UK. We've been trying to figure out what to declare on the crypto side of things, and the allowance here for un-taxed gains appears to be quite low, so in other words I'm going to be paying some tax. It appears that "trading" here in the UK, from an HMRC perspective means are you effectively operating as a business to make an income, and does not mean buying/selling crypto as such - but I'm struggling to be honest to be clear about that.
Now luckily I didnt make that much on crypto in FY22/23 (which we are currently declaring), so my tax burden wont be that high. But if there is a bull market in 2024 like everything is talking about, then the gains could be large and the tax burden along with it, so I really am starting to question what I will continue to do, and not do.
Also, as you've said - how in heck do you keep records for it all - every transaction, whether it be post payouts, staking income, etc. They are not asking for super detail here (yet). Luckily I work mostly just on the hive blockchain, and as such all the transactions are in the blockchain - but how do you even begin to sensibly extract them to help inform a tax return ??? Its theoretically do-able, but well beyond my ability !
So I feel your pain - and best of luck with it !
I went through the same thing with my WAX account when I was making hundreds of dollars per day from my play to earn games like RPlanet and Alien Worlds. It would have been virtually impossible to track it all. That's when I decided I was just going to claim what I converted to fiat. I made sure to bake in whatever I was going to owe for taxes so I wouldn't have that extra burden. What I didn't plan for was the penalty I had to deduct for in the following year. I ended up getting that money back because I didn't take any gains the next year, but it was still a lot of money to tuck away at the time.