jimbocoin 🃏 @jimbocoin - 7d
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
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. 🫶
Quite so
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.
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.
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.
I don’t recall reading anything about reporting transactions per se
I guess I’ve just been ignoring it 😬
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.
Correct
It’s hot garbage
