I'm thought about making my own but i've learnt its far beyond me.
Hi Friend, as with most things in life these days..."there's an app for that!"
Seriously, there are many apps that allow you to track your transactions and then summarize your activity for you. You don't need to mess with spreadsheets (they're so challenging!)
You just need to know the following:
- Transaction type, i.e., buy, sell, transfer
- Coin used, i.e., ummm if you don't know what coin you're using you have bigger problems!
- Date of the transaction
- Value of the transaction, i.e,. how much was bought, sold, or transfered
Now that you have a record of your transactions you can figure out what your tax obligation is. If you're taxes are generated through selling bitcoin (taxes in investment gains/losses) you'll also need to adhere to one of two transaction accounting formats. They are Last In First Out (LIFO) and First in First Out (FIFO). All these formats do is provide consistency for the cost of the bitcoin that you're using for each new transaction. If you're using LIFO, then your next sale of bitcoin determines it's gain or loss off of the cost of the most recent purchase of bitcoin. FIFO uses the gain or loss off of the cost of the oldest purchase of bitcoin.
If you have other specific questions, just shout (but not in all caps!) Good luck to you.
