I’m not a crypto person, but I have always been curious - how does the tax situation actually work if you don’t want to commit tax evasion? I know that on US tax returns you need to tick a box if you’ve transacted in crypto, and you have to pay tax on the realized gains/losses. How do you actually go about doing that accounting practically given the volatility and the number of transactions? Are there special pieces of software that handle those calculations? Do they differ between jurisdictions (other countries particularly)?
I know the real cynical answer is that most people just don’t report correctly, but I’m curious how you’d do it if you wanted to be legit.
I know the real cynical answer is that most people just don’t report correctly, but I’m curious how you’d do it if you wanted to be legit.