I want to start using the Pay me in Bitcoin feature Strike offers for a portion of my income. My question is if I get paid in Bitcoin and then at a later date use that Bitcoin for purchases (taxable event) or sell the Bitcoin (taxable event), how will I know the cost basis of the Bitcoin disposed of for tax reporting purposes?
Other exchanges offer exporting of cost basis information to third party crypto tax software for ease of tax reporting. I don't see any option to do that on the Strike app. It seems very inconvenient for me to keep track of the cost basis of every Pay me in Bitcoin deposit considering I get paid every two weeks for the foreseeable future.
On a more general question...So, if I get paid in crypto for 10 years and then suddenly start using that crypto for purchases (even small purchases like coffee) am I expected to figure out on my taxes the capital gains on that coffee purchase with cost basis info from 10 years ago (using FIFO)?
Am I missing something cuz in that scenario how will anyone want to use Bitcoin for purchases?
No comments:
Post a Comment