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LVRebel said:
Yeah, just trying to figure out what's going to be the best way to do this. On the conversion side of things, where does that cost go? It should be on the sale of the BTC in the example above right? So for instance:

Buy 0.1 BTC at 50, for a net 5k of BTC
Sell on Exodus as part of conversion.

If I sold it at less than 5k total value, there's no gain.

Or, say the value of BTC went up to 55k, so I then had 5.5k to sell.
If my initial fee to buy on Coinbase was $20 for example.
The transfer cost to get into HBAR is 3%, or $165.
So I would have a net gain of 500 - 20 - 165, or $315.

Is that the general idea of how you'd have to track this through the process?

And is it necessary to report purchases if you haven't sold anything? My accountant says no
Click to expand...
 
LVRebel said:
Yeah, just trying to figure out what's going to be the best way to do this. On the conversion side of things, where does that cost go? It should be on the sale of the BTC in the example above right? So for instance:

Buy 0.1 BTC at 50, for a net 5k of BTC
Sell on Exodus as part of conversion.

If I sold it at less than 5k total value, there's no gain. But there is a capital loss you should report on your tax return.

Or, say the value of BTC went up to 55k, so I then had 5.5k to sell.
If my initial fee to buy on Coinbase was $20 for example.
The transfer cost to get into HBAR is 3%, or $165.
So I would have a net gain of 500 - 20 - 165, or $315. Correct

Is that the general idea of how you'd have to track this through the process? Yes, this is how I understand it.

And is it necessary to report purchases if you haven't sold anything? No. But you will want to keep the data on purchases somewhere because you will need it eventually when you decide to sell.
Click to expand...
 
Weird, but the site isn't letting me reply to Rusty's statement, or even quote it. Either way, I'll just copy and paste:

In response to my question: "And is it necessary to report purchases if you haven't sold anything?"

Rusty said "No. But you will want to keep the data on purchases somewhere because you will need it eventually when you decide to sell."

That's going to be the tricky part I suppose, depending on how many transfers or sells you have. I'm not planning on selling a lot of my current shares at the moment, but am planning to hold for a while. Unfortunately, in my first year here, I probably did a little too much buy/sell/convert deals.
 
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