Post
Topic
Board Exchanges
Re: Will Bittrex provide tax documents at the end of the year, or am I responsible?
by
ngin-x
on 24/12/2017, 12:46:35 UTC
You might consider hiring a CPA to do your returns if you're making good money trading.

No one beside an idiot will go through so much hassle to declare something the government isn't even aware of you hold it. The far majority of the people 'silently' continue their trading sessions every year, and that's how it should be -- if there is no need to unnecessarily declare anything, then it should not be done. I haven't declared anything I ever gained, and I don't think I ever will, unless exchanges will at some point start snitching on their customers. It might actually turn out to be part of the governmental regulations that exchanges have to abide by in the far future, who knows....

I echo this sentiment as well. I downloaded the CSV provided by Bittrex today just to get an idea of how much tax I am supposed to pay in the upcoming assessment year and I found over 2000 trade entries there for this financial year alone with still 4 months to go. But that's not the issue. The issue is that it's impossible to make out the profit and loss on each trade since there are several hundreds of partial trades there between BTC/ETH and other currencies and there is no way to know what the price of BTC or ETH at the time of the trade since it is not recorded. It's also impossible to figure out which buys and sells can be paired together to calculate profit and loss.

From this I can conclude that only a moron would go through the hassle of keeping detailed record of each and every trade. If someone is doing that, I have my doubts on how much time he is actually spending trading as opposed to keeping records.