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I don't think anything changes if you're doing it this way. The new rules seem like their aimed at shitcoiners doing all their nutty shenanigans. Moving BTC between your own wallets does not reset cost basis but knowing what purchases are in each UTXO so you can follow FIFO is important.

Rojo 1y ago 💬 2

So as long as a person sells the bitcoin they bought on the same exchange where it was purchased, this doesn’t matter? Why does the IRS have to turn us into accountants?

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Discussion

Sam 1y ago

I think the main thing to understand is that you need to know the cost basis of the sats you have in each wallet, regardless of where you bought them. When/if you ever sell, your cost basis of that sale will be based on the first sats in that wallet (FIFO). If those sats are a year or more old it's long term cap gains, if those sats are less than a year old it's short term cap gains.

The long and short of it is consolidate your sats into a few hardware wallets, know the basis of those sats in each wallet and hold them for at least a year before you spend them so the government fucks you less.

This whole thing sucks and these stupid IRS suits can go fuck themselves. Prison sucks though so I guess we have to follow this.