Warning!!! Financial advice from a guy you don't know. (For income tax reports) 😅

Separate you spending bitcoins from your savings. Even though you theoretically should, do not report your spending wallet transactions since the capital gain/loss is not material.

Only transfer a minimum of 1M Sats in your savings wallet (utxo). Only report what you have On-Chain. If you do that, income tax compliance should be easy.