Why is no one talking about the new IRS guidance? https://bitcoin.tax/blog/irs-rev-proc-2024-28-preparing-2025-crypto-reporting-requirements/ #Bitcoin
Discussion
Because they can pound sand.
I just zapped you 100 sats for this comment. Please ensure to record the date, time, wallet and the current fair market value for your later cost-basis calculations. 🫶
WTF!
Quite so
So what exactly does this mean, we have to report each wallet we received and sold, or how much we have in different wallet?
As I understand it (I’m not an accountant nor attorney):
It means that each wallet and/or custodian now independently tracks cost basis for calculation gain/loss when selling. Previously, one could treat all of one’s wallets collectively.
The purpose of the “Safe Harbor” is for people who were using this kind of multi-wallet accounting to declare the cost basis for each wallet/custodian. Resetting, effectively, for the new tax year, since it would be difficulty or impossible to reconcile the old method with the new requirements.
Ok, so do we have to do this for this season or next?
Starting Jan 1, 2025, the per-wallet cost basis goes into effect. The time to do the Safe Harbor thing, if you’re going to, I think is right now. But you may practically have until your first spend of 2025.
I’m really not sure. The Bitcoin.tax guidance is what I’m going off of.
So we have to report all our transactions in non KYC wallets?
I don’t recall reading anything about reporting transactions per se
Ok, thanks.
What I mean is, the transaction data (addresses etc.) are out of scope.
Technically speaking, any spend is a taxable event, and the IRS expects you to report that you disposed of coin, at the current market price, and according to your acquired basis.
IN ADDITION, the network fee you pay to miners counts as “disposition” as though you sold the coin for dollars and then spent those dollars on the transaction. EVEN IF you’re just transferring from your own wallet to another wallet you control.
It’s bonkers that they expect this level of tracking and reporting, but that’s the letter of the law as I understand it.
We need to push as hard as we can once Trump is in office for a legal change where Botcoin is recognized as a currency, making it immune to capital gains taxes. Otherwise the drive to make users self- dox and pay tax on every transaction will only increase. I think ecash on top of Bitcoin is another viable solution.
This is the real test of how pro-American Trump really is. The status quo thing would be to ratchet up the requirements to make Bitcoin as hard to use as possible.
If Trump really wants to help Americans, here’s his chance.
Lots of people on NOSTR been talking about it the past several days. It’s a trade off between privacy and optionality with accounting. If you never sell you don’t have to worry about it at all
I guess I’ve just been ignoring it 😬
If any of you guys send sats to the IRS I will stop zapping you.
Because fuck them, thats why.
