Anyone know if I'd get in trouble with taxes for cashing out old crypto?

Business Forum Personal Finance
21

You can trace it back on the blockchain to see what you paid if you can find your wallet address. It’s a complete record of transactions.

If you can’t find it, you’ll just need to treat it as 100% profit for safety. But it’s better to avoid paying tax on an extra $1K or $2K if you don’t have to.

22

@Avery
Depends where it was bought. If it was from an exchange, it might not list the cost?

23

Sam said:
@Avery
Depends where it was bought. If it was from an exchange, it might not list the cost?

There should still be a wallet address, so there’s a chance. Just depends on the method used, but the blockchain records are there.

24

@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

25

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

You could maybe estimate from historical charts on the day you bought it.

26

Sam said:

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

You could maybe estimate from historical charts on the day you bought it.

Yep. The blockchain won’t show fiat value, but historical charts can help.

27

Sam said:

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

You could maybe estimate from historical charts on the day you bought it.

Check the day’s trading range and use the lowest value to be safe with taxes.

28

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

Is there any info about the transfer? You’ve got it in a wallet now, right?

29

Avery said:

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

Is there any info about the transfer? You’ve got it in a wallet now, right?

Yep, moved it from QuadrigaCX to a hardware wallet. Thinking of cashing out through Newton.

30

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

If you’re still holding it, check the transaction history in your wallet.

31

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

Didn’t Quadriga’s founder disappear with all the money? You’re lucky you still have your crypto.

32

Zephyr said:
@Avery
Bought it on an exchange called QuadrigaCX, which is gone now.

How did you fund the QuadrigaCX account?

33

I use Koinly to track costs by connecting wallets. Makes tax season way easier with CRA reports.

34

Eli said:
I use Koinly to track costs by connecting wallets. Makes tax season way easier with CRA reports.

My accountant also recommended Koinly. It’s helpful, though the full version is a bit expensive if you’re trading a lot.

35

Eli said:
I use Koinly to track costs by connecting wallets. Makes tax season way easier with CRA reports.

I paid for Koinly’s full report version for my accountant. I thought I owed $7K in taxes because of a swap, but it ended up only being $700. Close call!

36

Quick question: how come you’re not at all-time highs?

37

Chen said:
Quick question: how come you’re not at all-time highs?

I think OP isn’t holding Bitcoin.

38

Chen said:
Quick question: how come you’re not at all-time highs?

Maybe OP has altcoins.

39

Phoenix said:

Chen said:
Quick question: how come you’re not at all-time highs?

Maybe OP has altcoins.

Exactly. Never doing this again :joy:

40

Zephyr said:

Phoenix said:
Chen said:
Quick question: how come you’re not at all-time highs?

Maybe OP has altcoins.

Exactly. Never doing this again :joy:

Let me guess… was it LTC?