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Does it even make sense to report cryptocurrency gains and losses?

Does it even make sense to report cryptocurrency gains and losses?

Bitcoin Reddit

Reddit / Bitcoin Reddit 27 Views

I was accounting for all my crypto trades and trying to understand what has been my overall report on where I am. I really want to do the right thing and report what I did but I'm starting to have second thoughts if its even worth it. I didn't report my 2017 activity and I made gains that year but, due to unforseen circumstances, I didn't actively manage my account for a majority of 2018. I ended up with a net loss in 2018. My original plan was to amend my 2017 return once I could find some breathing time to understand what my tax obligation was and now that has come out to be a gain of which I have to pay taxes on. In 2018, I ended up with a loss much greater than my 2017 gain. Anyways, I really don't understand the point of all this. Why does it make any sense to report a gain in 2017 only to pay Uncle Sam his full share and in 2018 (and the many years to come) apply a limit of $3000 income tax loss per year. It just seems pretty screwed up and rigged against the average person especially since companies can do carry forwards and carry backwards and have less stringent restrictions. I mean honestly at this point I am torn from not reporting at all, report just what I withdrew to banks in 2017 and not report losses at all, or the case that a person who is trying to do right by the tax code and report a detailed list of cost basis and gains/losses. Its hard to deal with.

submitted by /u/leanman82
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