Are you a DCA daily buyer or lump sum #Bitcoin investor?
Which one will be easier for tax capital gains reporting one day down the road?
Food for thought.
Discussion
Capital gains tax reporting? Avoid that #FiatMoney problem altogether #HODL
#BTC is the unit of account.
Having just gone down this rabbit hole, the only thing that complicated my tax reporting was the transfer to and from cold storage. KYC exchanges and some (most?/all?) hardware wallets will export CSV files of your transactions so it’s not too hard to report, but matching them up and getting the fees right was annoying. But whether DCA or lump sum was trivial to manage.
Why did you have to report transfers to/from cold storage, as there are no capital gains involved?
More to the point, why would you transfer out of cold storage? ;)
As far as the exchange is concerned, when you transfer the corn to cold storage that counts as a sell I believe. That is the point where the paper trail ends as far as I know. Maybe #[2] can comment
Definitely NOT a sell, as there was no exchange for fiat. Are you sure the exchange listed it as a sell? If so, what exchange? I hardly ever use centralized exchanges, but I'll be sure to avoid any that does list withdrawals as a sell.
If you look at something like taxbit, transfers in and out are tracked differently from sells and buys. But tracking fees is the annoying part (to me).
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Good insight - I should check to see if my hardware wallet will allow me to export a csv - I never thought to check there.
Oh man, lining up the fees does sound annoying but it sounds like you figured out a system pretty quickly
I'm a DCA'er. I hope to avoid capital gains taxes either buy hodling until tax laws change and I can spend without incurring them, or when I retire I'll keep my total annual income under the 0% long term capital gains tax range, which is currently $89,250 in the US. I can easily live off that.
Of course, with the latter option, I'll still have to keep track of the gains and report them, which will be a pain.