Cointracking.info - What do you consider when filing taxes in the US?


#1

I just starting using Cointracking.info to track my trades so I can my taxes. I want to ask you guys how do you track the following.

  1. ICO: do you track the “trade” based on the contribution date? I’m assuming the cost basis of all your ICO coins/tokens will be what you contributed. Make sense, right?
  2. Bitcoin Hard Forks: how do you figure out the cost basis for BCH and BTG?
  3. NEO GAS: how would you figure the cost basis for GAS? To me GAS is similar to a “dividend” but it’s impossible to track all it whenever you received GAS. The cost basis of each GAS changes everything you receive it. Can I just track GAS when it is involved in a trade?
  4. Exchange Withdrawal Fees: I downloaded the Binance Withdrawal CSV, and it does NOT include the fees. It only show how much I withdrew. For example, I trade for let’s say 100 EOS. The Withdrawal History shows I withdrew 99 EOS due to the 1 EOS fee. https://www.binance.com/fees.html It looks like you have to manually enter each withdrawal?

Can someone please help provide a “guideline” on how to do taxes with the above in mind?

Jabba


#2
  1. Yes. Your cost is what you paid on the contribution date. Were there any other fees paid later on? If yes, add those in.
  2. The BCC cost basis I am recommending everyone to use is $275 per coin. It was the first price paid for the coin on August 1. Use the same methodology for BTG as of the date that it was forked (I don’t know the fork date). These are also the amounts of taxable ordinary income you should be reporting for the year (per coin).
  3. GAS - You should be recording the cost at whatever the price on the date/ time you received it. You should be able to go to the charts and drill down on that. You should also be recording that dividend as taxable income to you on that date.
    As you start disposing of GAS you will have to do some cost tracking of it. I’d suggest you use the LIFO inventory method if this is your first year of reporting.
  4. The charge is whatever the market value of the EOS is that you gave up. Same thing: Get the date and time of the charge and go to the price charts.

#3

Perfect, thank you @Peter_Rehm.

  1. Regarding hard forks, can I use the following method? I want claim BCC and BTG as $0 cost basis on the date I initially purchase BTC. That means whenever I sell BCC or BTC, I’ll will take the full tax gain at the price at the time of the sell.

Sorry, I saw your Atlanta video after I had this post.

Tom


#4

Tom,

Your BCC or BTG values are -0- at the date you acquire BTC (if acquired before 8/1/2017) because the forks have not yet occurred. Later, on the date of the forks the “cost” of the BTC does not decline. On that date you are acquiring a new security – BCC or BTG. On those dates your total cost of BTC/ BCC/ BTG increases by the amount that you declare as ordinary income from those forks.

Think of the securities you acquire in a fork like a stock spin-off

It’s taxed quite similarly.