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BTCrevolutionary 1y ago

Does consolidating UTXOs impact capital gains taxes? Short term versus long term? #Bitcoin

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Kosmosis 1y ago

It shouldn't. You haven't sold any coin you are just moving coins between different UTXOs you control. Keeping track of the actual buy price of each and then the sell price when you actually sell is what's important.

Also I don't know that Bitcoin has short/long term differences but I could be wrong on that.

I'm not a lawyer or CPA or even a remotely competent adult. So this is not advice by any stretch.

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bookguy 1y ago

Reporting requirements are absurd for myself, I'm buying $5-10 at a time over 52 times per year. It's not like I'm selling, but technically I should be reporting cost basis on all the zaps I send? An impossible task for me

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Robert Gremillion 1y ago

They were trying to push people to report things on a cost basis per wallet. So moving things from Wallet A to Wallet B... maybe that would impact a Cost Basis??? This is a great question for an accountant.

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BTCrevolutionary 1y ago

Any accounts on #nostr that can help with this?