Okay, someone help me understand this IRS Safe Harbor Plan.
Trying to get this figured out asap, so I hope this can be shared, discussed and helpful for others here.
#bitcoin #asknostr
Discussion
I made a stab at it. It was aggravating. Not planning on selling anytime soon anyway, but tried to have some documentation showing an attempt.
What documentation did you fill out? Can you send it to me?
Just want to make sure I fill out the proper document
From
What I understand there’s no formal document. But you need to make something like an excel file which shows the cost basis of your bitcoin, and how you plan on taxing it in the future (I.e FIFO or HIFO). And then you time stamp it with something like https://opentimestamps.org
You don’t need to submit anything, but if the IRS comes knocking in the future you have this document with a time stamp.
This was a good video on the subject.
Good luck. I’ll be doing this Monday.
Here’s a piece my accountant sent me. https://www.thetaxadviser.com/news/2024/oct/universal-accounting-for-digital-assets-concludes-but-safe-harbor-available.html
Watch the crypto tax girl video. Download and fill out the document in her blog. Screen shot your wallets when you are done transacting for the year before the 1st. Pray that government inefficiencies start to change. I myself am trying to plan how to get out of the states within the next 5 years. This place is a shit show
It’s so stupid and people should be rightly pissed off how they threw it out there at year’s end.