Prepare For The Crypto Bitcoin Tax Trap In 2024

As we’re coming closer to the happening of bitcoin, it’s going to affect altcoins and bitcoin alike. So first off, the two different ways that people are going to lose money is an exorbitant fees from your CPA or tax preparation company. These people that don’t even know the first thing about crypto have no problem charging you up to $200 or more per hour to file your crypto taxes. The other way that people are going to lose thousands of dollars is in undocumented transaction fees and possibly not recording all of their losses, which will cause them less money that will not come back in the form of a tax return.

Now, the fact of the matter is, before we start this, you have to understand that if you are lying on your tax document, the IRS has set it up to where you are absolutely liable. If you do not check a special box and it’s in the beginning of your tax return, it pretty much lines out everything. Have you bought, sold, trade, pretty much thought of, had a dream about or smelled cryptocurrency? Have you ever tasted it? They cover their entire basis on the front page.

There’s a very special reason why, when this first came out, I was one of only 700 and something people in the nation that were honest with the IRS the first year they came out with that checkbox. Why did I do it? The reason why is because I knew that they knew that they already had the ability to reach back into the past and find out if you were lying.

Even though at that point, exchanges in the US or the world were not conforming with IRS and us government standards. They knew that at a certain point, the IRS can, through an audit, reach back into your past a certain amount of years, including if you had a crypto exchange. So I was one of the 700 people that were honest on my tax returns. You have to understand how serious this is, because if you get caught not being honest in the last few years, you could say, oh, sorry, it was a mistake.

The IRS isn’t going to look very kindly on that. And at the same time, we have so many people that are wasting so much money right now on taxes when it comes to crypto. I’ll give you an example. My budy told me and my buddy started a company about this, of organizing everyone’s crypto trades, right? He started a software sort of component to this, to where it takes your trades for a very nominal fee and lines them all up so you can hand them to your tax preparer.

So they have the cost basis and everything like that at their fingertips, right? Someone they knew the reason why they did this, they were crypto consultants, was charged $8,000 for a report that cost for them, that cost them $400 because their cpas had no clue, because they had so many day trades or so many trades, and the transactions were broken down into so many bits, micro bits of the buys and sells, the way they were purchasing their crypto.

And it was a nightmare for their CPA to unravel, but they charged them hundreds of dollars an hour to do it. It cost them $8,000. So a budy of mine started a company, said, there is definitely a better way because the blockchain is intact and it’s set up in a way that it’s easy for software to go and grab a public wallet address and go decipher all of the trades, the buys and sells.

So what they do, and I put a link down below and he gave me a coupon link so that it’s less how much it is. It says normally they charge $249 for this report, and then they charge $35 per blockchain. And so if you have like, let’s say a Coinbase account, and you need to figure all this out for your tax professional and you don’t want them to do it, you don’t want to just print off a report, because right now, Coinbase, Gemini, all these companies, they do not supply you a capital gain or loss transaction report.

They don’t do that. Matter of fact, TD Ameritrade only started doing that for stocks, I want to say, ten years ago, twelve years ago, I don’t remember. They didn’t do it either. And they would give you all your buys and sells, but they wouldn’t break it down, depending on if you wanted it broke down as first in, first out, or highest out, all that kind of stuff. It’s a big deal how you do your cost basis and how your accountant wants to do this.

So they said, they gave me a discount link. It’s down below. And you guys are only going to pay if you want this service, $199 for the report. And you don’t even pay for the report until it’s generated. And $25 per chain. So if you have, let’s say, bitcoin that you buy and sell litecoin and XRP on coinbase for that year, you would be paying the $200 plus 25 for each chain.

So $275 and what it does. And I want to show you what this looks like. They produce a report that comes out and let’s see, boom. Like right here, they’ll show you an executive summary, a full report with an executive summary of the total that you bought with how much money you traded, profit or loss. And then the detailed report. Let me see if I can blow this up for you.

The detailed report shows the timestamp with the blockchain, the date it comes over to the amount of the asset, like certain amount of bitcoin was purchased. And then it shows you all of the other stuff down. The report, including the transaction id on the blockchain, verifiable for the IRS. It’s all black and white, it’s totally transparent. And I think this will save people so much time and heartache and stress that I think it needs to be out there.

And so I wanted to make this video right now and put that link down below. It’s the discount link. Because right now you are going to be able to use this to hand that report to your CPA and not spend just if you have four or five different coins that you’ve bought and sold in the last year, this is going to be less than one or 2 hours of your CPA’s time trying to figure this out.

And think about cpas or enrolled agents that don’t even own crypto. They don’t know what a transaction id is or how do you break. Think about this. You’re dealing with. Look at just this line of bitcoin right here where it has just all of the different amounts of bitcoin that were purchased, right? It would be a nightmare for a CPA or tax professional that doesn’t even know what this is.

To figure this out, then think about this. All of the transaction fees, you’ve got to consider all of that kind of stuff. So my point being is that it’s important to be organized. And I think this is honestly one of the greatest solutions for anybody that owns crypto. So go and take a look at it. I think you’re going to be really blessed. The links down below it’s a discount link.

So if you use that link, you’re going to get a discount. Hope you guys have a great day. The economic ninja is out. .