Tax Records Start Before The Trade
Describe the basic records needed for digital asset tax reporting and reconciliation.
The reframe: the tax record begins when the wallet moves, not when tax season starts. Digital assets can move across exchanges, self-custody wallets, payment apps, and DeFi protocols. Each location may produce a different export, and none of them may understand the full economic event. The IRS digital asset question asks about receiving, selling, exchanging, or otherwise disposing of a digital asset. Clean answers require clean records. The Minimum Record Capture date and time, asset, quantity, USD value, transaction type, fees, counterparty or wallet, transaction hash, and purpose. This is not bureaucracy. It is how you preserve cost basis and…
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