Hey All, I've been trading like a maniac the past few years using lots of different exchanges and not keeping records of trades. It would be nice to send a few btc back to coinbase for USD but I'm afraid some blockchain explorer they have will follow the transactions back through everything and I could get into trouble fortrading altcoins. Am I being ridiculous? Sounds ridiculous as I type. I suppose at some point I need to take profits but I'm just nervous about going back to coinbase.
The first rule of tax is to have conclusive proof of your transaction. You will not get charged any taxes until the time the money doesn't show up in your real bank account. When you hold your assets over virtual blockchain then by law it has no meaning as you are not really having it unless you exchange it for the fiat currency. Once you convert it to fiat and withdraw the money into your bank account then that becomes legally taxed one. I think you dont have to worry about how much you trade and how much you earn as long as you are going to pay your taxes.