Sunday, December 27, 2020

If I make less than $40K a year and my taxable events were less than $1000 gained, am I really expected to declare that on my taxes?

I had BTC and 3 altcoins heading into this year. I never sold any crypto before this year, only bought and held so taxable events are a new thing for me. This year I converted 2 long term (over 1 year) altcoin bags I was holding into bitcoin at a great loss. However 1 of my altcoins I had bought in at different prices (including some this year) and some of those buys had seen gains (but not my initial purchase from 2.5 years ago). I converted half of that third altcoin to BTC so I guess there was some profit there on some of those buys. It's all so confusing. I also tried my hand at some trading of a few random altcoins this year and sold; lost money short term. Definitely done with altcoins and trading...

This is all on coinbase BTW. Yeah I am a noob scrub and still refining my game.

How am I supposed to figure this all out now for taxes? Can I just hand over my coinbase report to H&R block with my W2 if I wanted and have them figure it out? Would they even know what they are doing and would that cost me more?

Would I get ass reamed by the IRS if I just didn't bother with it? It's not like I am some rich dude holding out on the IRS. There may be at most a couple hundred bucks in it for them but again there may not be and it may cost me a couple hundred bucks to even figure that out... plus I only make less than $40K a year.

I never sold a single satoshi and I plan on only buying BTC from now on and hodling. Someday I'd love to retire/begin taking profits and at that point I'd be happy to pay taxes at the full rate without qualm but with my silly trading this year and little to no gain on taxable events, am I really expected to do all this math just to see how little I owe the IRS? It can't be much at all. Nothing but a fucken headache that is.

For example casino's don't bother reporting less than $1200 gains. As far as I know the IRS has bigger fish to fry as well. I plan on following all laws this is just me doing research and getting a feel for what people do.


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