At this point, you may feel like sticking your head back in the sand is the better option, but you then run the risk of the taxman catching up with you, which could be much worse.<\/p>\n\n\n\n
The important thing is to get ahead of the issue. The longer you leave it, the harder the process of remembering all those wallets you created, phones you lost and transactions you made. <\/p>\n\n\n\n
You have to realise that tax isn\u2019t discrete, with each year one distinct block unconnected to the previous. If you\u2019ve been in crypto for a while, what you did several years ago may have an impact on your taxation now.<\/p>\n\n\n\n
Omitting one address, wallet or exchange can have a huge impact on your potential liabilities as transfers aren\u2019t taxed, just disposals, so getting as complete a picture as possible is essential. It may help lift your spirits to realise that losses can potentially count against your tax liability and if you are clever enough you can employ tax harvesting measures which realise trading losses to minimise any potential bill.<\/p>\n\n\n\n
However, even when you think that you\u2019ve cracked it, and having accounted for your whole crypto transaction history and synced your crypto tax account, ready to high-five yourself, you\u2019ll likely be faced with the horrors of \u2018Need Review<\/em>\u2019 transactions. <\/p>\n\n\n\n This then requires a painstaking Sherblock Holmes approach to combing back through transactions to figure out how you\u2019ve angered the crypto tax gods.<\/p>\n\n\n\n The truth is that no matter what they promise, no crypto tax service is ever going to be 100% foolproof and nor will they provide a concierge type service unless you pay top dollar, because naturally crypto tax services aren\u2019t free.<\/p>\n","protected":false},"excerpt":{"rendered":" At this point, you may feel like sticking your head back in the sand is the better option, but you then run the risk of the taxman catching up with you, which could be much worse. The important thing is to get ahead of the issue. The longer you leave it, the harder the process […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[591],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8956"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=8956"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8956\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=8956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=8956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=8956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}