Subnostr

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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Discussion

NathanS000 1y ago

I’ve always wondered about this also. You’d run into the same issue if you were stacking something like gold or silver over time too. What’s the cost basis?

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.