I am doing large amount of transaction, including coin-fiat and coin-coin and found doing transaction based tax calculation is impractical. I came up with the following simplified method, and would like to see whether it's acceptable. I am expecting answers from professionals, so please let me know if you are a CPA.
suppose starting with nothing, I spent $B amount in buying different types of coins, and received $S amount in selling coins, I paid $F in fee and finally i have $M worth of coins, based current market value.
so my capital gain is $M + $S - $B - $F, and all my coins will have current market value as its cost base. i would ignore all the coin-to-coin transactions, and fees paid using coins.
If the above method is acceptable, then it's a much easier calculation.
The main downside is that i am treating the $M as realized gain, which is fine if the coin value goes up, since it increase its cost base. all the transactions are done this year, so i am not worried about long term vs short term. if you have a more tax efficient and simpler method, please let me know.
Many thanks!
Topic: bitcoin tax calcuation (Read 218 times)
Jump to: