Hi all, I’m brand new here so forgive me if this has been previously covered, but I haven’t been able to find any information close to my situation specifically.
With the IRS putting feelers out in regards to cryptocurrency sales, I have been utterly lost as to how to accurately report my winnings and losses throughout 2020. I have hundreds of bitcoin transactions between the purchasing, sending, receiving, and selling of the asset. All of them are exclusively related to gambling. I never held crypto for more than a day max, always converted to USD immediately.
I have pretty close to the same amount of bitcoin sales as I do purchases (I may be up slightly, but not certain yet). I’m being asked to report every single taxable event over the course of the year. Obviously this would be extremely time consuming and also wouldn’t tell the whole story.
So I guess my questions are: Does receiving winnings in bitcoin trigger a taxable event, or just selling the bitcoin? And once the bitcoin is sold, do you only pay taxes on the capital gain in the time you held it?How are y’all dealing with this on your tax returns? Any info at all is much appreciated! Thanks
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