Does anybody know how to do a tax return if you bought BTC in 2017 and sold in 2018?
I think, my situation is not uncommon
I purchased around 3 BTC in total in December 2017 at around 16K, then I sold it later in 2018 at 6K
According to my research, the basic approach is to fill out
form 8949 and attach it to
1040 Schedule D. The problem is that it spreads through more than 1 year, so I cannot do it automatically by exporting coinbase reports and using bitcoin.tax
I believe, I can use this formula:
Total sale amount – basis = realized gain/loss In my case, total sale amount is 3 * 6 = 18K
Now I need to calculate what the
basis based on my transactions in 2017. But the problem is that I had numerous buy and sell transactions in 2017.
For example:
11/02/2017 BUY 0.8 BTC $12K
11/04/2017 SELL 0.1 BTC $11K
12/01/2017 BUY 0.5 BTC $13K
12/07/2017 BUY 0.6 BTC $14K
12/10/2017 BUY 0.7 BTC $15K
12/10/2017 SELL 0.4 BTC $15K
12/20/2017 BUY 0.5 BTC $16K
so what would be the
basis in my case?
is this the right approach overall?
PS: I am using Turbotax and bitcoin.tax. All my transactions were on coinbase
Thanks
M