The thing I donāt understand about the new IRS rules is whether any of the separate wallet accounting matters if all you ever do is buy, sell, or spend using the same exchange. And Iām assuming that moving between your own wallets still doesnāt reset the cost basis, right?
Discussion
Government still not understanding bitcoin and trying to make rules about it is the most frustrating and confusing thing.
I don't think anything changes if you're doing it this way. The new rules seem like their aimed at shitcoiners doing all their nutty shenanigans. Moving BTC between your own wallets does not reset cost basis but knowing what purchases are in each UTXO so you can follow FIFO is important.
So as long as a person sells the bitcoin they bought on the same exchange where it was purchased, this doesnāt matter? Why does the IRS have to turn us into accountants?
I think the main thing to understand is that you need to know the cost basis of the sats you have in each wallet, regardless of where you bought them. When/if you ever sell, your cost basis of that sale will be based on the first sats in that wallet (FIFO). If those sats are a year or more old it's long term cap gains, if those sats are less than a year old it's short term cap gains.
The long and short of it is consolidate your sats into a few hardware wallets, know the basis of those sats in each wallet and hold them for at least a year before you spend them so the government fucks you less.
This whole thing sucks and these stupid IRS suits can go fuck themselves. Prison sucks though so I guess we have to follow this.
I thought Bitcoin was sovereign money meant to give people an alternative financial system against the corrupt fiat system.
I must've missed the taxes part in the whitepaper š .
the good news is if you never sell you never pay taxes lol
Iām a cuck. Iād rather not go to jail for tax evasion and leave my family without a father/husband.
Sorry to hear that mate.
Recommend checking out https://kycnot.me/ for DEXs.
Bisq is a good one.
Also use tor, or Mullvad VPN š.
It's not your money if it can be taxed.
Thanks
This guide also covers quite a bit if you want more information.
https://bitcoinmagazine.com/guides/how-to-buy-bitcoin-anonymously
I also recommend checking out
https://ashigaru.rs/ (They're a samourai fork)
you are n number of laws away from giving all your bitcoin to the government
what you just wrote is true for ANY law they might come up with in the future
fear is the mind killer
if youāve never sold any btc and donāt plan to - does it even matter??
Iām thinking the same- Iāve tried my best to keep clean utxoās. In the event I ever did want to sell, I should be able to transfer utxoās at specific cost basisā
If you're creating lots with each purchase then tracking from wallet to wallet should be easy