How the hell is the internet going to support EVERY crypto holder doing snapshots on EVERY wallet they have all on 12/31/24 close to midnight? Not to mention the block explorers query load that may result. What a joke. Can’t wait to experience this. Thanks IRS and Congress.
Also, the total tax amount on all your gains over all years will be the same. Except for any strategies you used to claim LT vs ST gains, HIFO just allows you to postpone paying tax on higher gains until a later date.
I think, if you were using HIFO, keep using HIFO. If you were using FIFO, you can declare your change to HIFO for 2025 and beyond if you choose. There are more choices but it gets complicated. Someone correct me if I’m wrong.
I have a feeling that 99% of crypto holders out there will be caught by surprise by this IRS rule change and anyone watching this video is in the 1%. Go tell your crypto friends before the new year
Im planning on transferring all my cryptos into an LLC, already established, just need to execute. Q: should I do it before 12/31/24 and just sign the safe Harbour plan for the LLC? 🙏🏻
Within a hardware or software device (referred to as a wallet), I can have multiple addresses and each addresses can have multiple UTXOs (transactions). What constitutes a wallet in the IRS's eyes - the hardware or software device, the address on that device, or the UTXOs (transactions)?
Not exactly stated, per se, but here is my take on it (as an amateur nonprofessional). One unique seed set per crypto, IMO, would be considered one wallet, if you want to specify it that way. For Bitcoin (and the like) this would be a good way to do it, because when you transact in bitcoin, your leftover coins are automatically reassigned to new wallet addresses. For cryptos like Ethereum and ones on its platform, one wallet address is one wallet works, since your leftover coins are not automatically reassigned to new wallet addresses. I hope that helps.
What if you're not required to pay taxes due to being on disability? Do you still need to report? And if you make under $25k? Thank you for this video ❤
Cool. I hope you see my question first. Lol Ok. What if I have crypto in cold storage and a handful of crypto on the exchange that I never put into cold storage. If I sell off my cold storage coins before Dec 31st will I be clear moving into 2025 with the ones I never took off the exchanges? Thanks for your time.
Excellent update. The best explanation of the new Safe Harbor Plan for crypto on the web to date.
What about if we used CountDefi?
Can i add more wallets after the deadline
How the hell is the internet going to support EVERY crypto holder doing snapshots on EVERY wallet they have all on 12/31/24 close to midnight? Not to mention the block explorers query load that may result. What a joke. Can’t wait to experience this. Thanks IRS and Congress.
Do I need to take records of my iTrustCapital crypto Roth IRA ?
Damn… I forgot about that. Yes sure why not. Just do it as well!!
I have that same question, thanks
How can it be mandatory to use FIFO? If 2024 was HIFO and you switch to FIFO in 2025, you’ll be double taxed on the same coin.
I understand FIFO will be the default treatment by IRS if you don’t declare a different method in your DAAP per Rev Proc 2024-28
Also, the total tax amount on all your gains over all years will be the same. Except for any strategies you used to claim LT vs ST gains, HIFO just allows you to postpone paying tax on higher gains until a later date.
I think, if you were using HIFO, keep using HIFO. If you were using FIFO, you can declare your change to HIFO for 2025 and beyond if you choose. There are more choices but it gets complicated. Someone correct me if I’m wrong.
@@gcam474What is a DAAP?
I have a feeling that 99% of crypto holders out there will be caught by surprise by this IRS rule change and anyone watching this video is in the 1%. Go tell your crypto friends before the new year
Im planning on transferring all my cryptos into an LLC, already established, just need to execute.
Q: should I do it before 12/31/24 and just sign the safe Harbour plan for the LLC?
🙏🏻
Within a hardware or software device (referred to as a wallet), I can have multiple addresses and each addresses can have multiple UTXOs (transactions). What constitutes a wallet in the IRS's eyes - the hardware or software device, the address on that device, or the UTXOs (transactions)?
Not exactly stated, per se, but here is my take on it (as an amateur nonprofessional).
One unique seed set per crypto, IMO, would be considered one wallet, if you want to specify it that way. For Bitcoin (and the like) this would be a good way to do it, because when you transact in bitcoin, your leftover coins are automatically reassigned to new wallet addresses.
For cryptos like Ethereum and ones on its platform, one wallet address is one wallet works, since your leftover coins are not automatically reassigned to new wallet addresses.
I hope that helps.
What if you're not required to pay taxes due to being on disability? Do you still need to report? And if you make under $25k?
Thank you for this video ❤
Cool. I hope you see my question first. Lol
Ok. What if I have crypto in cold storage and a handful of crypto on the exchange that I never put into cold storage. If I sell off my cold storage coins before Dec 31st will I be clear moving into 2025 with the ones I never took off the exchanges? Thanks for your time.
This AMA was pretty disingenuous. You read off made up questions.