GlitchyGentileFren on Nostr: Here’s a question for the more advanced #BTC enthusiasts out there: I’ve been ...
Here’s a question for the more advanced #BTC enthusiasts out there:
I’ve been hodling various cryptos in a self-custodial manner for years, so I’m not completely new to the world of #crypto.
Initially, when I knew even less than I do now, I tried day trading to get a feel for things, thinking it would lead somewhere. While I didn’t make a loss, it didn’t take long to realize all I was doing was generating a crazy number of meaningless taxable events with little to show for it. That’s when I switched to a HODL strategy.
In the meantime, an increasing number of vendors and service providers have started accepting BTC and other cryptos. Even #NOSTR seems to be promoting the use of BTC in everyday life via the Lightning Network.
That’s all great and definitely the way forward, but how do you guys—especially in the US, where crypto is considered property rather than currency—deal with the attached tax admin nightmare? Creating a taxable event every time I buy a pizza seems to create more hassle than it’s worth.
Does anyone have any tips or tricks for integrating small BTC payments into everyday life without creating an administrative #tax nightmare? How do you keep track of transactions? I’m not asking for loopholes or anything illegal; I just want to know how others manage it and whether I’m overcomplicating things.
I’ve been hodling various cryptos in a self-custodial manner for years, so I’m not completely new to the world of #crypto.
Initially, when I knew even less than I do now, I tried day trading to get a feel for things, thinking it would lead somewhere. While I didn’t make a loss, it didn’t take long to realize all I was doing was generating a crazy number of meaningless taxable events with little to show for it. That’s when I switched to a HODL strategy.
In the meantime, an increasing number of vendors and service providers have started accepting BTC and other cryptos. Even #NOSTR seems to be promoting the use of BTC in everyday life via the Lightning Network.
That’s all great and definitely the way forward, but how do you guys—especially in the US, where crypto is considered property rather than currency—deal with the attached tax admin nightmare? Creating a taxable event every time I buy a pizza seems to create more hassle than it’s worth.
Does anyone have any tips or tricks for integrating small BTC payments into everyday life without creating an administrative #tax nightmare? How do you keep track of transactions? I’m not asking for loopholes or anything illegal; I just want to know how others manage it and whether I’m overcomplicating things.