RE: Crypto market 1 year ago - 2017 September 15th
Nice perspective! I must say my involvement in crypto took an abrupt halt when trying to unravel the confusion of tax consequences for each transaction. I went wild last year participating in everything and then come tax time was left scratching my head at trying to retrace all the activity. Every event being taxable is a nightmare. So many trades both on exchange and decentralized such as Shapeshifts, ICO's, EtherDelta, Cryptokitties, Prisms. In fact because of this I basically halted all activity after participating daily since mid-2017.
I am wondering how many others there are out there like me that were heavily involved on a daily basis during the hyperbolic phase that stopped once the reality of tax responsibility hit home?
I wish I would have kept track of every transaction at the time, but I thought foolishly it would be only a taxable event at the time of cashing out to fiat. Doing the right thing in terms of attempting to follow the current tax rules is painful, but I am hoping this effort now will payoff in terms of showing compliance in the future. After I get this tax mess straight I plan on keeping track as I go so it is not this painful and plan on jumping back in the market. Hopefully there will be others doing the same if this prevented them from participating similarly.
It is not too easy to keep track of my trades either i have to agree here, i am using cointracking.info for this purpose, pretty good.