Replying to Avatar Satoshi Pacioli Accounting

Bitcoin Tax Tip of the day.

Bitcoin held over a year is taxed at a lower rate in the US.

Even the IRS wants you to Hold.
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DRE 1y ago

What do you do when you can’t determine or prove the cost basis of a UTXO? Take the L and use $0 or will the IRS accept an educated estimate?

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Satoshi Pacioli Accounting 1y ago

Hard to say what position the IRS would take. I'm not aware of any active cases to reference. I would say it doesn't have to tie back to an individual UTXO, but ideally some record of activity either from a wallet or exchange.

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DRE 1y ago

Gotcha