Every year I do my own taxes, and ever since I’ve had to add how much I make when I trade bitcoin to the taxes, it’s become a little bit more complicated. There was a time when no one cared how much people made from bitcoin, but since the prices hit an all time high, the government wanted in on the action and decided to start taxing everyone. I never really liked tax season because of all of the forms I have to fill out, and having to fill out one more is just a pain. I have no idea how people prepare taxes for a living, because I would get tired of having to do everyones taxes. I would hire someone to do mine, but I prefer to save the money.
Since I make multiple trades during the year, I have to figure out how much profit or loss I’ve made from bitcoin. Trading platforms usually try to make things a little easier for people to figure this out by having a document that mentions all of the bitcoin transactions they’ve made. There are websites that can take these document and use formulas to figure out the profit and loss amounts.
Tax season is going to come around again soon, and I probably won’t be ready. I could do my taxes the moment the new year starts, but I usually wait until the last minute. I keep saying that I will do the taxes eventually, but I never get around to it, and have to scramble to finish them. I would probably hate doing taxes less if I did them on time. Either way, I’ll be happy if I can get a refund, because that will give me more money that I can use to buy bitcoin that will be reported the next year.