RE: "You should also consider coinjoining your KYC stack."
I've been bitten by this. If your coins are kyc'd and you coinjoin, you'd better be disposing of them. If not then the IRS will tax you a capital gain when it leaves your 'trail' and income when it comes back. It's a double tax on a non-taxible event.
I hope not...my entire stack is being coinjoined as I type this
Just remember that everything on the blockchain is public, and with taxes the burden of proof is on you. If you create complexity, you will be the one responsible for intangling your web. Guilty until proven innocent, and all that.
nostr:npub1tsrh6g3etzdahj0jgnvec86z0sqw7yhkcq9l578m4tyv8v5976yseatmmg please define "disposing" of them.
dispose as defined here
What they don't tell you is that if an irs agent (during an audit) can't trace your BTC all the from the orignal purchase to the final sale then you run into trouble. When this happens then there is missing info, like a wallet that you might have used temporarily to transfer between wallets, a coinjoin, etc. Then you have to figure out and remember what you did years ago, for every transaction. Did this go to an exchange, come from an exchange, from exchange to exchange, etc? If you try and do your taxes you will see the tax software try and do this for you, but if you are a power user it simply geta it wrong. All of them get it wrong, and none of them agree the truth, neither will the IRS.
The only sure way is buying non-KYC so nothing is tying you to a Bitcoin purchase
Gov will always know when and how much Bitcoin you bought if you KYC even if you coinjoin
The only way to "undo" is selling the same amount back to the same exchange you bought from so it looks like you don't have any left. Then re-buying non-KYC. Don't have to do this all at once. You can do this slowly over time in chunks. You might lose a little bit to fees and taxes but the peace of mind going forward is worth it I think. Or you can roll the dice up to you.
Remember, the leeches in DC were discussing taxing unrealized gains a couple years ago.
Appreciate this
Here are ways to do it. It's for Monero, but there is a lot of overlap that you can use for Bitcoin:
https://pb.envs.net/?8d147af77e283d95#8YBZCoLJjG5a8bqNqwvGKLAwQfMUSeBE52GsP6UJBy7U
