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I think I'm totally screwed on Taxes. Been trying to figure this out for months now. See why inside.

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by COINS NEWS 193 Views

Ok you all warned me. All your snarky RIP UR TAXES LULZ comments are haunting me now.

I've tried almost every tax calculator I can find. Koinly, crypto tax calculator, bittax, accointing, and a few more.

They do a great job if your simple. But heaven forbid you played with any bots! If so, you're totally, utterly screwed.

So, crypto tax calc gives me 40,000 warnings. What? Most of them are "negative balance" or missing cost. Gate.io in particular is very bad for this.

If I do a Rebalancing Bot, what it does is it'll take, say, $1000 USDT and purchase 10% of 10 coins of your choice. When you close the bot, it puts those 10 coins in your trading account. But guess what? The history it tracks does NOT track the movement of 1000 USDT. It does NOT track the purchase of the 10 coins. But it DOES track the receipt of the 10 coins at a zero cost basis. In other words, the tax calc will think you just got those ten coins completely free!

What the hell! I've tried downloading the CSV of the data and working my advanced excel skills even made a tool that helped me add in the purchases manually. I went through all 28 rebalancing bots one by one and tried to correct it. I thought I was doing it right but alas, several days of wasted time.

I'm incredibly frustrated and honestly terrified. It thinks I made a fortune. I actually lost every damn gain I made. At best I broke even (lucky me!) but in reality I should have some capital losses to claim. Koinly thinks I owe $12k!!!

Its such a piss off. Why can't they just tax the in and out of the on/off ramping. It's seriously insane they want me to do the math on every transaction, and it's rendered impossible due to exchanges not tracking things right.

I have no idea what to do, honestly I want to cry. I haven't even told my wife yet that I was dabbling in Crypto and, honestly, worried she's going to be furious with me especially if the data can't be fixed. 12k?! That's more money than I actually made at the height of November. How the hell could I owe that much in taxes?! This is so wrong. I've tried everything I can think of to balance it out. Very worried my marriage is in trouble if I can't figure this out and we're going to be doing our taxes together next weekend. What am I going to say! This is seriously messed up...

Sorry, not sure what you fine people can do, but I had to rant. Maybe I'll get lucky and someone can share their experiences of how you figured this out.

I'm Canadian by the way which makes things harder since most tax guides online just talk about US taxes.

TLDR: I'M F__KED

submitted by /u/mythstified
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