If I was a sneaky prick  I would not have been picked up.
I am picked up because I efforted to be a compliant taxpayer.


  I have a degree in accounting  which really annoys me  as a lot of the rulings make no sense on an accounting level.
I a going to drive to the beach and have some fund walking the boardwalk with my wife when I come back I will do some more research on how to correctly comply.

Part of what is wrong  is simple transfers of coin out of coinbase.

Coinbase does not know where the coin goes so they  show it as a cap gain or cap loss.

but if you moved it to your core wallet it is nothing a wash and coinbase reported the transfer as a liquidation thus causing a cap gain or loss.

I now understand why they fought so hard to not have to do the info release to the irs.

everything I see shows me that unless you are 100% in coinbase  or 100% out of coinbase do not do crypto in the usa.

As of today the methods used by coinbase to report transfers of coin out of it to other   accounts  that you own cause a long set of reporting issues.

As someone with a background in accounting I can see why coinbase reports a cap gain or loss on all coin leaving the account. as they have

no way of knowing you sold the coin = cap gain or loss
used the coin to buy gear = cap gain or loss
 

you simply moved it to your core wallet = ? not sure what ruling is on this. Since you always were the owner of  it and kept it in btc form.


we know why we want coins in a core wallet as it is safer then having all in coinbase.