Most enlightening talk Ive been to at TABConf so far today has been the one titled Demystifying Crypto Tax.
So much coming up with the IRS.
Discussion
tl;dr version if you will?
Patrick Camuso gave the talk (on twitter).
Heres some of my rough notes
- Exchanges and other brokers will be sending out 1099-DA forms. Initially this will only cover proceeds from sales. Later will include cost basis.
- Need to establish standing orders with broker and document for self custodial as to how handling (FIFO, LIFO, HIFO, etc) before Jan 1 2025, and stick to that, updating records (and amend tax filings as appropriate) to ensure squares out in case of audits. This alignmemt should be consistent with the 1099-DA
- Sales tax issues for onchain tx is creeping up in different jurisdictions
- Switchover from universal basis to accounting by asset basis may be tedious
Not sure I love the sound of that 🤣
Heard the IRS prefers people to use bitcoin on chain as a currency instead of cash. Easier to track they say.