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RE: Only Crypto In The Wallet: How We Managed To Live Years On The Blockchain
How does one deal with taxes? Is there a tool for tracking the value of crypto when you earn it and spend it? Or do you simply treat it like money in the bank? I’m curious what the mechanics of accounting are.
In fiat, the accounting assumption is that a dollar is a dollar all day every day. When we pay bills with crypto, it’s going to be a different amount depending on the market. That’s what makes me nervous.
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I won't lie to you, taxes are really hell with this. Best way until they get this more organized is to either really track every move you make in Crypto and pray you got it right or get a CPA involved. So far I been good every year with the tax man but i am always worried every time before they approve what I send that something was missed. We need real reform in this area for us here in the USA definitely.
Good thing with me is I use Coinbase and Bitpay which has easy access to crypto to fiat conversion tracking. I try hard to mainly stick with Bittrex as well for that reason when it comes to exchanges but sometimes you gotta move around, just make sure you keep good records when you expand to other exchanges.
All in all, can be done but it gets tricky with taxes, this I should have included on the write up but thank you for asking in case someone else is wondering as well.