Big Changes in USA Tax Accounting

Universal accounting, which is treating all your crypto assets cause if they are stored in one wallet for tax purposes, even if they are in multiple Wallet, will no longer be allowed starting on New Year’s Day.

Almost everyone has been using universal accounting as most of your tax software does it this way, and it’s also the most intuitive.

The IRS put out guidance that going forward calculations need to be made on a wallet by wallet or exchange account by exchange account basis. This is to increase their ability to get third-party reporting to reconcile matching.

Further, their bulletin threatens that they may go back and re-calculate taxpayers previous returns unless they complete what’s called the safe Harbor allocation by New Year’s Eve

I feel like I am very on top of what’s happening with crypto taxes, and I was surprised by this.

I just want her to put this out here so that people can figure out what to do in the next two weeks. You need to get this done before New Year’s Eve.

Basically, you need to sell any assets that you don’t wanna deal with or may simplify things for you. Then consolidate all your remaining assets into one wallet per asset. Then you need to make a snapshot of all your assets and list what purchase price and acquisition date you’re assigning to the app that you hold and keep this as a permanent record. You also need to explain what you’re doing and sign a paper saying what you’re doing before New Year’s.

If anyone has helpful links, please post them in this thread.