So I'm going to lead off by saying this is about Bitcoin, though frankly issue would apply to securities though I assume it might come up less. I am in the USA.
So the situation is that starting in 2019 I began doing a small amount of trading using Popular service A. This was the first time I ever sold Bitcoin, though I did have other holdings prior to this time, there were no taxable events. At one point in 2019 I deposit cash from my bank into service A, and buy bitcoin. Que buy/sell/buy/sell blah blah. Come tax time, I load up my transaction report of buys and sells and do the work of figuring out my profits, using FIFO, all using short term capital gains rates at the end because it was all less than a year. I had a similar situation for 2020, reported and filed, ok cool.
So it's 2021, I have trades this year already, short term trades. But now I want to cash out some of my longer term holdings, so I transfer some from my long term holdings that were held by Popular service B, and sell them on Popular service A. And immediately think- Oh fuck, will the IRS think it's weird that I've been reporting a bunch of short term, and suddenly there is going to be a sale where I am saying, oh hey I'm using FIFO still, but this bit I sold is older than anything else I have told you about up to this point...
I'm worried I screwed it up and best case just have to redo a lot of calculations and refile, I think the impact on taxes would be pretty negligible potentially even in my favor if I should have been using the older coins for my basis all along, but I do want it to be correct going forward. What do you guys think?
The trading amounts were never enough to warrant hiring a professional, and while the amount now is more significant it is one time, and I don't want to engage a CPA if I am just massively over thinking this... thank you in advance for any advice!!
No comments:
Post a Comment