MultiversX Tracker is Live!

Crypto Reporting (US) - Bitcoin and failing to report loses; Need help to fix this

Bitcoin Reddit

More / Bitcoin Reddit 91 Views

I. $20K in Purchases reported to IRS

I have purchased Bitcoin (BTC) on Cashapp in 2021, 2022, 2023 and 2024. Cashapp reports these purchases to the IRS. The total amount purchased over this time is about $20,000 worth.

I have the basis for everything from Cashapp, which provides the date, purchases, amounts, etc.

I never once sold BTC on Cashapp -- it was transferred out.

II. $18K in complete loss not reported to the IRS

HOWEVER, I was quite a degenerate then, having got into margin trading in which I swung massive gains and losses. Ultimately, I lost all but 2K work of my BTC.

The way I lost it was by transferring the BTC to other exchanges that do not report to the IRS*.*

III. The problem

The IRS sees that I own and still have $20k worth of BTC, but at different times over the years I have sold/lost BTC for a substantial loss.

I do not have selling dates, prices or anything of the sort on these trades. The trades occurred on 10+ different exchanges and there are thousands of transactions.

What I do have now is my cost basis and what I am left with: about 0.047 BTC (~$2,000 worth). I did not cash out BTC to dollars - the BTC I no longer have is a result of a complete loss. It's quite embarrassing to lose this much, but I have learned my lesson and life goes on.

IV. How do I go about being honest and reporting this?

My goal now is to report this to get it off my chest. I want to be honest and practical about my situation. These are substantial losses at 100% given the margin trading. While tax would 100% be do on each of my thousands of training gains, I did not make any net money -- I'm down quite a substantial amount.

I clearly lost way more than I currently own. It would be impractical to go and attempt to track my enormous amount of trades now.

Any suggestions on how to report this?

submitted by /u/Competitive_Line1406
[link] [comments]
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments