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In response to
"So my wife is now a sol-trader, do our accounting folks have any tips.."
by
Karl_S
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With the caveats that it isn't my area of practice, I don't trade crypto, and you're on another continent...
Posted by
spamlet
Aug 22 '22, 06:34
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Is she doing it through a brokerage? At least in the US, the brokerage is required to keep track of your trades and give you the breakdown of sales, costs, and gains (and provide that to the tax authorities). I don't know if that's the case for you. Obviously, that would make things much easier on the recordkeeping component.
Also, the US treats crypto as property, not currency. So you have to report gains/losses on every transaction no matter how small (though I think that's changed in one of the recent tax bills?). Most countries seem to do it that way but you'll need to check.
If it's either not through a brokerage or they don't have to report, a spreadsheet is probably the easiest way. If you search online, I bet someone has developed a great one but if she's not making hundreds of trades then you could probably get away with a simple one tracking what she has and what she's sold. In the US, it defaults to FIFO (first in first out) but you can also elect to do specific tracking so you can sell the highest cost ones first to minimize your gains, you just have to identify what you're selling when you sell it somehow.
Sorry I'm not more helpful but hopefully that will get you a start.
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