...how stupid is this?
**WHAT DO WE ACTUALLY HAVE TO DO BEFORE WEDNESDAY?**
Bitcoin tax filing is becoming an even greater headache for the U.S. taxpayers in 2025, especially for the users of centralized exchanges:
1. The "universal method" for calculating crypto gains and losses is being eliminated.
2. Reporting will now be done on a wallet-by-wallet or account-by-account basis.
3. Centralized exchanges will issue 1099-DA forms, similar to the 1099-B for traditional securities. These forms will most likely be incorrect.
The safe harbor forces taxpayers to complete their 2024 Form 8949 gains and losses BEFORE the end of the year and BEFORE completing the safe harbor allocations.
More on this here: https://www.cryptobullseye.zone/blog/anchor-your-crypto-ship-in-the-irs-safe-harbor
Discussion
This is weird. Why is this all of a sudden a huge deal? Why wasn’t this well known leading up to the end of the year? Something feels off about this.
IRS being jerks. I think it's been on a few peoples' radar but final guidance just came out, I believe, in early December.
I'm starting to think that this might only apply for taxable events on exchanges, but I'm also seeing that we have to do something even for non-custodial wallets. Has to do with methods for determining cost basis.
Obviously if all your bitcoins 😂 are non-kyc then this may be a moot point.
Maybe I'm being wreckless, but I think all of this is going to change drastically under the incoming administration.
This is all a part of choke point 2.0.