I know in general it's all good. But I see a lot more attention on my posts and I know some of that has to do with my vp, if it keeps growing what will that be like? It's a strange experience but I guess a very good one
And yeah I heard that about long term capital gains so I've been sitting on it. Not sure how to calculate what's a year old when you dollar cost averaged in
When determining cost basis, the rule to follow would be to use a first in first out method, so when dollar cost averaging you want to calculate the amount of bitcoin for example that you purchased prior to Jan 2020. If you purchased all in the same place your account history should show you when your trades were made. It can definitely get sticky if you made purchases in various places but you can trace through the blockchain when each purchase was made.
This is incredibly helpful :-) Do you know how specific you have to be? Is it ok to only include information about large trades and leave out fee's and tiny transactions and such?
Well, obviously I can't advise you but I personally have followed what you are suggesting to a small degree. I'm a calculated risk taker and while it isn't 100% accurate as it is desired by the authorities, I'm a small potato and the difference between 100% accurate and 97% for example is insignificant.
What they are looking for is that you are reporting all of your income and not hiding it. Most audits happen because income is under reported and usually noticeably so. I personally know a couple of individuals who spent time in prison due to trying to hide a good chunk of income.
I plan on finding someone who knows this stuff for a living but you’ve been great help!