As of yet I have not earned anywhere near enough to warrant being taxed but it is fairly easy to do so, you will only be taxed here when converting crypto back in to fiat and so therefore you just have to keep track of those transactions which is easily done within the sites you use or bank statements etc.
I'd have to disagree with you...unless you have some more specifics to add. I've been at this for about a month and I have created, from a taxation perspective, a labyrinthian maze of transactions using Coinbase, Binance and Shapeshift which will, as far as I can tell, make if close to impossible to determine what my cost basis is for the amount of coin that I convert back into fiat currency.
After pondering this for a while, it seems that trying to keep track of this like you would with individual stocks is out of the question. I'm also thinking that people may lose track of the sometimes (not all the time) God-awful fees we pay for simply moving currency from one site to another which will add to the cost basis of our holdings. And isn't it true to say that there is no record of currency conversions done at Shapeshift because you have no account there?
My point is...if you cash in 100 altcoins, how can you determine your cost basis after all the gyrations we have to do with our coins - especially coins other than what I call the big 3: BTC, ETH, LTC.
I will continue to research this and ponder it but if anyone has any specifics on this I'd love to hear. Maybe by the time we cash out, we'll have so much money we'll simply hire an accountant to take care of this.
On a somewhat unrelated topic...I was going to join eToro to do copy-investing (copying the trades of proven investors) but the reality is that I would be entering into literally thousands of forex contracts over the year all of which, I assume, the IRS would want individually reported on your tax return.
