Replying to Avatar Nate

Say I want to buy something, like a truck for example, with my #Bitcoin that I legally bought with my post-tax labor wages.

10% in local sales taxes and title fees

+

15% federal capital gains tax on an *indeterminable appreciation*

Forget the ridiculous 25% tax amount for a moment. How do I determine my #Bitcoin cost basis on several years of small DCA purchases? Is the expectation to guess and consequently lie on a tax return? Bc the actual cost basis can't be accurately proven, and would require enormous effort to attempt.

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Devin 1y ago

If you don't give a basis, I believe they assume it to be $0. I've tried the automated software, but a good old fashioned spreadsheet does the job better.

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