Thank you. Will do soon.
What if interest reported by the exchange (when downloaded) is shown by the day and the coin but no value of the coin at that day is on the excel file - How does one determine the value on that specific day (note - staking sometime shows daily coin gains for example).
Is there a standard wya to value all coin interest over a period of time? ā¦ or does one have to determine the value on each day, place that into the excel file, calculate to dollar value each day, and then add it all up?
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That a good question. I have experienced something similar with traditional assets when you have private loans. We use an average exchange rate when calculating interest over time. It might be a āreasonable methodā to calculate an average of some sort and use that as a conversion rate. If it fluctuates too much maybe recalculate the rate each quarter. Daily is not necessary. The irs is generally ok with any āReasonable methodā consistently applied. Of course, āReasonableā leaves a lot of room for interpretation.
Dear All, can anybody refer to the crypto taxation specialist in EU/Germany
and general question, where is the tax payment location and how to identify it? is it where you transfer your gains (account numberās location country ) or which exchange you conduct trade from (server location. for example. Hongkong) or is it your residence address (I have three for example: Germany, Russia and China )
Thanks David for the informative course. What do you think of this article that interprets lending/yield farming LP tokens that appreciate to be capital gains (rather than interest): https://cryptobriefing.com/how-calculate-2021-defi-tax-bill/. Example is Compound cToken that appreciates with interest and when you sell it to the depositing token, the gain is capital gains. Most yield farming poolsā LP tokens are appreciating tokens.
Hey @DKSCPA thank you very much for the course.
I noticed that you have said that we can choose FIFO, LIFO, or specific ID for gains. Do you have to stick with whatever you choose from that point on? I am using some crypto tax software so it is just an option that I have to choose. I assume sticking with the same one would be easier than trying to switch in later years.
Also, does that selection in any way affect other assets such as stocks? For example, do I have to pick FIFO for both crypto and stocks or are they completely unrelated?
Maybe Iām slightly misunderstanding and the IRS doesnāt care at all about all of that other than as long as you donāt claim sell the same asset twice and follow the rules correctly.
Iām just curious because I know I can save a lot by doing specific ID because it will make my gains in 2020 smaller and push more of my larger gains into long term for 2021.
Thanks!
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Hey Mike. Did we connect on your question? Let me know if you still need assistance.
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We did not. I mainly ask about this for future reference as I have already done my taxes for 2020. I used FIFO for crypto trades because it was the simplest. But going forward, will I have the option to switch, or do I need to stick with FIFO from now on?
And is there anything wrong with doing FIFO for stocks and specific ID on crypto?
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You will need to select one and stick to it. If you use spec ID then it often provides the most flexibility. You can use different methods for stocks and crypto. That is fine.
So I thought I has it straight about airdrops and tax implications i.e. I do now owe any taxes for any airdrop I received which WAS NOT converted to fiat and NOT traded for another token ā¦and just remained in my wallet
Now a friend of mine who went to some webinar is telling me this:
I attended a webinar and asked this accountant that specializes in crypto about airdrops. He said that the price it hits your wallet is what you will be taxed at with a basis of zero. Then that price it hit your wallet will be new basis and additional tax depends if sell after 1 year or less.
does this mean I really should have reported my UNI airdrop ? oh man
assuming this is US tax regsā¦
Im using koinly to track my taxes and was wondering if weāre supposed to use submit tax reports for 2020 or 2021?
Lets say I have 15 ETH in one wallet on coinbase but 10 are long term and 5 are short term. If I sell 10 ETH can I claim that I only sold the long term holdings even though they were mixed together with the short term ones? @DKSCPA
That is a good question to bring up. I do not have an account with Coinbase. Yet, they should issue you a 1099-B at January 31st with short-term and long-term transactions.These are then reported on the Schedule D. An 8949 is more detailed, but I think with how a major brokerage works the schedule D is only necessary (If your with one brokerage [Coinbase}).
With the long-term transactions, they are counted before the short-term because of First-In First-Out (FIFO). FIFO is automatically used unless a different method is used when you make a sell on a transaction. This is the standard. And then your new base is recalculated after the transaction. I would be interested to hear Spencerās response to this.
apologies for asking this againā¦I did complete the digital assets course but mY IoT subscription has finished.
In regards to US tax resident I am almost 100% I remember in the course that any airdrop like UNI was only taxable/reportable in 2020 tax return if one sold/traded it and basically realized any gainsā¦
can anyone remember?
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.
Due to the overwhelming need I am accepting all questions via a 15 minute zoom meeting to decide if we need a more in depth discussion. Please follow the link HERE to make an appointment on my calendar. I am looking forward to the conversation.