New Crypto Tax Rules Explained: What You Need to Do Before January 1st

[@CryptoDad]

👇👇👇👇👇👇👇 🎉🎉🎉🎉🎉 These rules have already been revised by the IRS on Jan 1, 2025 due to pressure from the Blockchain Association and the Texas Blockchain Council who had filed a suit against the IRS on Dec 28, 2024! IRS ISSUES TEMPORARY RELIEF ON CRYPTO COST-BASIS METHOD CHANGES cointelegraph.com/news/irs-united-states-temporary-relief-crypto-tax-cost-basis-methods x.com/TheCryptoCPA/status/1874184460507496788

[@GeauxTigerz2012]

There are no crypro laws and regulations in the US. Only IRS rules. Rules are not laws. Asking US citizens to pay taxes on crypto is against civil liberties.

[@futureforward3153]

lol

[@puttpearson996]

try using your civil liberties defense with the IRS. See how many years you end up in jail. I don't like taxes either but crypto is no different than any other investment.

[@Peace2all4vr]

Yes, no one gave the IRS authority over cryptos! They just arrogantly assumed control - or better description - demanded their cut just like the mafia. Pay up, or suffer the consequences!

[@theGabester]

Better re think that….

[@wyewound]

Good luck with that:)

[@SpeedDemonExpress]

Let me get this right. SEC won't say if Bitcoin and Eth are securities but a judge ruled XRP isn't a security but didn't say what it is, CFTC says they're commodities, IRS says it's property, and crypto people say it's currency. The IRS wants to tax capital gains on crypto currency but they won't return captal losses on federal reserve notes. And how are you supposed to show a cost basis if you're mining? Show them your power bill? Or if you have no cost basis because you bought on am exchange that no longer exists? And they want you to pay taxes on your trades even after your crypto was lost or stolen? And how exactly is everyone supposed to know about this safe harbor thing only a few days before the deadline? I never got a letter or email did you?

[@johnandrosekelly6719]

They want ALL of your money and crypto, per the institutions and the banksters

[@mpbetterlife]

IRS is an illegal 3 letter agencies like most of them! They are scaring people in investing in Crypto assets so that prices plummets and the big institutions can scoop them up!

[@katisugarbaker7349]

Thank you.

[@noelg9795]

Also with mining you have newly created ASSET what not touched market and don't have price. Same like potato in soil.

[@audislowroad]

Chevron

[@DarthRaver-og7qq]

Blockchain association already filed a lawsuit in opposition to this new IRS "rule".

[@CryptoDad]

Interesting thanks for sharing that. Not to mention that Trump and RFK Junior were talking about not taxing bitcoin conversions at the bitcoin Nashville conference in during the summer. So things could change.

[@DigitalCitizen1]

Not taxing crypto would be devastating to the economy because if stock traders knew that they would flock to crypto

[@Locococo000-j2d]

​@@DigitalCitizen1Sounds good for us crypto holders

[@kennethhammond]

The real problem is the IRS and how taxes have become a government industry.

[@brian8431]

Yeah exactly what are forefathers founded this country they vowed that taxes would never go over 4% ever and now look at what we're paying they would be rolling over in their graves if they knew. All taxes need to be abolished and the funny thing is if all Americans would get on the same page and just stopped paying taxes what the heck is the government going to do about it? They going to come and arrest everybody? Unfortunately the sheep are too afraid of our government to do something like that so it would never happen unfortunately

[@oneheadlight8000]

They are taxing crypto and calling it a currency.. but when you exchange one currency for another, if you’re going to a foreign country, it is not taxed.. so why is a cryptocurrency tax when you exchange it for another one?

[@jdubs712]

@@oneheadlight8000 the answer is it used to be. The same with art, collectibles, classic cars, etc. It was what was called a like/kind exchange. As long as you bought something in the same category it was not a taxable event. The law was changed during president Trumps first term in what was known as the tax cuts and jobs act. Now the only like/kind transaction is for real estate. Go figure.

[@MG46931]

USDC and other stables are the only currency. The rest are considered commodities maybe? They should be considered something else with the exception of bitcoin and any other coin that plans to act as a store of value. There needs to be different categories of crypto's, and they all should have their own rules and tax laws. Specifically rules and tax loopholes that help with its innovation.

[@ponzo1967]

​@@MG46931 it may get refined like you're saying in the next few years but for now this is what we have unfortunately.

[@ET-sp6qm]

You don’t make a capital gain when exchanging currencies 1 to 1

[@chrisdoe6890]

@@MG46931ripple and XRP are only crypto with regularity clarity by SEC. Declared a currency . Bitcoin or Ethereum never got full clarity from SEC

[@CryptoDad]

🔑 Key Takeaway: The new 2025 crypto tax rules don’t have to stress you out! Watch this video for clear, easy instructions on how to sign and date your Safe Harbor Plan and understand how the new wallet-by-wallet accounting will impact your taxes. Drop your questions below-let’s get compliant before the deadline! 👇

[@Shirley-n-Maryland]

THANK YOU, THANK YOU, THANK YOU, for doing this & CLEARLY Explaining it!!!!

[@mcb7768]

Global Allocation would be if you hand it off to agency to do like Crypto Girl If you do your own you could do Specific Allocation if you Choose still wallet by wallet

[@mcb7768]

Have one little problem with that form It says Global Allocation What about Specific Allocation Change that wording before you sign otherwise you are stuck with GLOBAL 1 Reply

[@mistman-w6c]

I got a question, I'm new to Crypto. I have USDT in my OKX wallet with seed phrase (fresh favorite sister horror abuse august suggest athlete emerge blush hybrid various). How do I convert it to sol for degen trading?

[@vicvic2081]

Crypto dad. I spoke to my cpa. He said not worry about it.

[@dee3953]

Can you send me your cba website? Or office in nyc. Thank you

[@jeffreyadams8264]

Crypto was supposed to be private. Now everyone is super happy to comply! Enter the world of CBDC's.

[@alexpeuhs4419]

Crypto was never meant to be private. That was the deception they wanted you to believe.

[@escalade8759]

Imagine that!

[@brian8431]

The government has to be involved in everything they can't just let something go if there is money involved they want their piece of it they're scumbags really when you think about it because cryptocurrency was really supposed to be something that could not be taxed and now here we are. Absolutely disgusting

[@elskid206]

Crypto was never designed to be private. The blockchain is entirely public.

[@KROWNCHAKRATV]

bingo

[@yothere4863]

I hope Trump gets rid of capital gains on crypto like he said he was

[@pacman1792]

Why would you hope this?? There's really only long-term capital gains as if you sell it in under a year it's really just income tax and I for one would rather pay the 20% capital gains over income tax!!!

[@LiteForceOne]

Force taxing crypto is like stealing value from people. They therefore want people to give the value of their assets freely by signing, complying and accepting to do it. You are using your free will to give your assets freely in the name of taxation. Peoples assets are already taxed people are buying crypto for already taxed assets and being asked to freely give it again if the new assets value goes up. Accepting and complying to wrong things isn’t for the good of the people and people should at least be aware and really think about it before accepting and complying. Anyway Love and peace to everyone out there ✨✨

[@jn1mrgn]

They're already stealing our money through inflation. Now they want to steal it this way too.

[@ZENergyTarot]

It will take a REAL revolution to stop what they are about to do....AGAIN

[@waynewilliams4930]

If I’m holding not selling there are no realized gains

[@LijunZHANG]

Decentralization is the whole point

[@joellynparks7805]

Thank you for covering this today.

[@hoffman408]

We should pass a law that forbids the IRS from taxing crypto "gains".

[@fromthepeanutgallery1084]

I don't get how the IRS can make rules up as they go without it becoming tax law through congress and signed into law by the president. Unless its tax law signed by the president I dont see how it can be implemented.

[@user-mm6xi3er5u]

Because we are ruled by an oligarchy. We are not a democratic republic and haven’t been for over 100 years. Simple.

[@jenjen9266]

Exactly

[@raptv8315]

The government holding out their 'empty palms'

[@billhorn3]

That they will use to GIFT billions$ to foreigners. Americans're being bled dry.

[@AudraGibson]

Thanks for the overview. But this isn’t all you have to do. You have to take a snapshot of where your crypto is in each wallet and or exchange and the cost basis for that crypto. Meaning you have to know what you paid for each lot of BTC, ETH, Solana, etc. in your hardware wallet or any hot wallet. Not quick or in any way easy for those of us with multiple wallets who have been trading for years. Also, word on the street is that crypto tax girl charges around $500 an hour for her tax services. She must only be the crypto account for super OGs or whales because who can afford that? This whole thing is a mess and a huge over burden by the IRS on any average crypto investor. There is no reason why we shouldn’t be able to use the universal method of accounting.

[@Sandruby]

My feelings exactly! Well said.

[@kilis3804]

This is definitely a burden. I have no clue how I’m gonna be able to do this. Plus, just today saw this video. Had zero clue about this safe harbor law 🤦🏼‍♂️

[@htownkimmie3762]

This is crazy. We should not have to share our wallet w them!!!!

[@Shirley-n-Maryland]

OHHHHH!!! THANK YOU, THANK YOU, THANK YOU for doing this video NOW!!! Was on a tax co's zoom call a few hrs ago..CPA wanted $500-$600 to ""create" this FORM for me. BUT told me its NOT on the IRS website and I DON'T have to send it to them. SO GLAD YOU ARE NOT GATEKEEPING AND ARE SHARING WITH US THE FORM.. THANK YOU, THANK YOU, THANK YOU,!! NEW Subscriber here!

[@CryptoDad]

Yes, I had seen several videos on KZbin, but they were extraordinarily long or dry like Laura’s. I felt that Laura did a great job of explaining it but still it was a bit long for most people. I tried to sort of boil everything down to the essential points and keep the video short

[@Shirley-n-Maryland]

@@CryptoDad well, I got her form. I'll take it to a Notary in a few hours to verify my signature AND Date signed. Thank you

[@wburham]

@CryptoDad You can always use gpg to sign the form which will provide the timestamp needed.

[@Sharon-wh9hw]

Defund the IRS

[@ajosephc8953]

Congress makes the law of the land not the IRS.

[@steve0ne11]

It’s actually is worse than it seems for some people. Calculating your cost basis across thousands of transactions is a nightmare. Remember, some of us have been in this space since 2013.

[@CryptoDad]

Yes, going that far back could be a problem. However, when you sign up for a tax services like Koinly or CoinTracker, all you need to do is provide the wallet, addresses and API to your exchanges or if that’s not possible export your transaction history from your exchanges. But yeah, that could be a real issue if you’re dealing with stuff that happened back before 2017 or even in the last few years depending on the exchanges you were using

[@phil3689]

Use Koinly software

[@AudraGibson]

Agreed. Especially after you move that crypto off an exchange to another exchange or into a cold storage wallet.

[@ET-sp6qm]

@@CryptoDadmost of the time those api calls have missing transactions and many chains for private wallets aren’t offered by koinly.

[@CryptoDad]

@ Very true. And a lot of US users are now blocked from using Binance.com and KuCoin. If they did not get a chance to export their transaction history, they are out of luck.

[@katiepaine]

I don't know anything about any of this stuff, but to be safe I saved 3 versions of the document: HCAF, LCAF, OAF. So in the future I can decide which is best to use when the time comes.

[@metalgirl]

I took my form to the bank and they notarized it which I think is a good idea.

[@ogmgp]

Thanks for the clarity on this.

[@CryptoDad]

No worries!

[@drb1950]

Thank you for the downloads information !

[@CryptoDad]

You bet!

[@M3LTUP]

My opinion. Crypto price changes every 2 seconds. There is no basis to tax it until it is converted to USD or USDC , USDT. Converting ETH to BTC should not be taxed since no USD was realized.

[@coreyoliver3182]

Have all the opinions you want, but you convert ETh to BTC you just created a taxable event to the IRS and ignoring that could end you in jail.

[@M3LTUP]

@coreyoliver3182 Yep. Which is why BTC dumped from $107 to $92. The traders are are harvesting tax losses to offset their gains.

[@danaparicio3114]

Well done crypto, dad! Thanks for keeping all of us well informed! 😊

[@mrjon75]

As if i don't have enough to worry about at the end of the year... But thank you, this is good to KNOW. And it's probably a win. Clarity is good.

[@pnketia]

I spoked to several CPA's and they all said filling out the form without getting it notarized is useless as the IRS will not honor the form without a notary signature. It makes sense because if you didn't get it notarized you could just print the form anytime after this year and backdate it to 2024.

[@johnandrosekelly6719]

But if you send it to your email before the first of the year, that will let them know it wasn't backdated

[@AwareOfTheTruthNow]

Or take a picture of the signed form will provide a digital date stamp

[@wburham]

Or sign the form with gpg -detach-sign which will provide a cryptographic timestamp

[@jerryfish10]

Here's the thing all I heard when I got in this crypto thing was it was to not have the middle man the government now we have the government in it all now what happen????? This is BS in a big way. I just started this year in January so now its no different than anything else. BS

[@jn1mrgn]

I guess it means we all need to start mining instead.

[@cryptocrazy560]

RULE: NOT LAW! FORGET THE IRS That is the problem now is that noone stands up

[@CryptoDad]

Oh I'm sure there are plenty of people standing up in their jail cells that were convicted of tax evasion

[@thebill8891]

Sold less than 40 quid 😂

[@cryptocrazy560]

@@CryptoDad I understand that however what LAW is there? Check the USC

[@Original22]

Just read the safe harbor plan on its sight and it says it protects against audit ! My question is if your long term holder and have never sold then what are they gonna audit you for ?

[@CryptoDad]

@@Original22 if you’ve never sold, then you don’t have any capital gains to report. You’ll only need to pay taxes on your capital gains when you sell.

[@chbmail]

Crypto is not a currency recognized by the government. You can't buy groceries with crypto so why is there a tax on crypto?

[@mcfehn25]

Safe Harbor protects you IN an audit, not FROM an audit. Big difference.

[@YoBooBoo]

If the document doesn’t require filing, what is the point of it? This is very strange, but thanks for the info.

[@coreyoliver3182]

Email it to yourself so you have a dated copy to show the IRS in the case of an audit.

[@echofive1178]

I have always used FIFO. Just the way my tax software defaulted first time I was in crypto. Just stuck with it.

[@AudraGibson]

Me too. But I’ve never used wallet by wallet accounting. This is a big shift when you’ve been filing with universal method since 2017.

[@cyiwin]

Yes and we'll all use FIFO going forward but now it's wallet by wallet. There is no downside to Declaring your initial accounting method and screenshotting for your own records.

[@kadeemk4679]

​@@cyiwin ppl were able to pick and choose according to convenience. I think that's the downside imo

[@41213]

Hey buddy! Been watching you since 2017! I completed everything! 😊

[@CastorDavidson]

If you’re not sure of which method, sign multiple sheets with multiple methods , get them dated on your computer and when you come to a firm decision about which method you’re going to use, then use that signed document pertaining to that method . There are ways of dating your document on your computer . If you want to do it the old fashioned way, then get them notarized. Good luck finding a notary towards the end of the year.

[@CastorDavidson]

I got mine notarized and I had to hop a bus to go to a city (20 mins) from my town whose notaries all disappeared on New Year’s Eve day.

[@CastorDavidson]

I forgot to take a picture of my Chainlink and Pepe tokens within my Ethereum wallet on Trezor so I changed the clock on my Mac and set it back a day to Dec 31 and took a screenshot and it was dated Dec 31. I

[@seangreenbey7250]

I have not sold any my assets been holding for a while dose it make since to do this….Thank you

[@jeffross2181]

Thanks for this!

[@siakcheong8838]

What if I transferred some crypto to a scammer's fraudulent exchange wallet that no longer exists and suffered a complete loss?

[@BachelderMark]

I have the same problem. I am going to try to beg off, I did email KZbin just after I fell for the scam , I can save that as evidence that it did happen. And use Coinbase records to corraborate the timing.

[@jn1mrgn]

I think the changing of this to wallet by wallet is an admission by the IRS that they don't know what it's older wallets, because they weren't looking. Now they are going to be paying close attention.

[@CryptoDad]

Yes, me too. It seems to indicate that they really had no idea how to track down a lot of these transactions. When I spoke with Laura back in 23 she brought up the fact that the IRS was kind of pleasantly surprised when people filed crypto taxes because it really wasn’t on their radar so to speak. I think that’s changing now

[@beowolf19751]

Thank you Sir for taking the time to present this information!

[@CryptoDad]

Glad it was helpful!

[@gregsearle5347]

Look into the Chevron Doctrine. If it was not passed in congress, it’s not a law.

[@cryptocrazy560]

@@gregsearle5347 That was actually overturned

[@wilg.2594]

Thank you for posting this. We got it done!

[@robert-vl1qu]

Thank you Rex for calming us down!! Greatly appreciate YOU.

[@CryptoDad]

Sure thing

[@wandaeby6367]

So here is my question about taking a screenshot and saving it on my computer. Anything saved is uploaded onto the cloud. Isn’t that a problem to have your personal financial information out there for anyone to see?

[@CryptoDad]

I’m wondering why things on your computer are being shared to the cloud that’s not normally how computers work. Unless you’re talking about some sort of Microsoft photo sharing that you’re doing? In that case, even though they’re stored on Microsoft cloud they’re not shared publicly, at least not in theory.

[@denizinan979]

If you are using OneDrive on your PC, do not save your tax & finance stuff in “My Documents” folder, save it in a folder that exists locally only. If you don’t understand what I’m talking about, ask a tech savvy friend or a family member.

[@wandaeby6367]

@@CryptoDad Thank you for clarification about the cloud regarding desktops. What if my computer was hacked and they were able to access that screenshot. Is there anything on that screenshot (since it has digital data)that an experienced hacker could use to hack into my LedgerLive wallet or any trading platform such as Coinbase? I have two friends that don’t have a desktop and have only used iPhones to purchase their crypto. Since screenshots/photos can be uploaded to the cloud…same question. I really appreciate your video about this. You truly do explain things so well. I’ve been a fan of yours for a long time.

[@LennyinFlorida]

Helpful. Thank you.

[@boxalarm10]

I don’t understand. Why are all these creators saying you must do this by the end of the year if the form doesn’t have to be sent into the IRS?

[@cosmiccontrarian3949]

Basically your acknowledging the new rules for 2025 at the very first day of of 2025. If you get audited by the IRS you can show the agent your Safe Harbor form and that you are aware of the requirements and you abided by the new rules from day one of 2025. The form should be kept with your other important tax documents for future use.

[@boxalarm10]

@ I understand that part, but what is stopping me from printing the form in February, backdating and signing then? If they aren’t checking now, why do I need to do it now if I can just backdate? Sorry if I sound dumb, I’m just not following the “do it now before 01/01/25.”

[@kayjalu6501]

@@boxalarm10 I haven't looked at the IRS site, but I'm guessing you'll have to somehow prove that you did it before Jan 1. I don't see the IRS just taking people's words for it. A simple photo with your phone would do it. You don't want to be in the position of not being able to prove it later if they happen to check you.

[@CryptoDad]

Saving it on your computer in your file system also carries a date and time stamp

[@CryptoDad]

Not to mention the fact that filing your taxes is also a case of the IRS taking your word for it. There are many types of government documentation that are basically you swearing that what you’re doing is true. Giving your signature is just one of those ways. When I was in Indonesia, and I wanted to marry my wife, who was Indonesian, the Indonesian government required proof that I was not currently married. And the way that I got that proof was going to the US Embassy and raising my right hand and swearing to the consulate that I was not currently married. So me giving my word to my own government was proof enough for the Indonesian government. After I was done, the consulate gave me an official letter to give to the Indonesian government. (I wasn’t currently married to anyone else at that time, by the way, in case you’re wondering.)

[@cessealbeach]

I have owned 4 bitcoins since 2011 and 3 Ethereum since 2020, I just did that, I have Not sold any of my crypto because of taxes, Hopefully my president Trump will go no tax on crypto, so i could cash my coins.

[@user-mm6xi3er5u]

Not going to happen, not ever. Sell a little when needed, pay the tax as you go. Hopefully you don’t wait too long. Proposals being submitted for taxing unrealized gains. Meaning you pay taxes on crypto you hold but haven’t sold yet. That will be a big one, if it happens. Don’t worry though, the insiders will figure out a loophole for themselves before it is forced upon us peasants. We have time.

[@qneville6490]

If you hold on a cold storage and have never sold do you have to worry about this

[@sterlingdewey]

THANK YOU !!!

[@Victor-kl3cy]

Do we have to do anything if I haven’t sold anything all year. I’ve been just buying since 2017 never sold.

[@mikef6063]

But im sure youve traded one crypto for another. Thats taxable

[@Victor-kl3cy]

@ I have not

[@Victor-kl3cy]

@ buy buy buy

[@GreenCandles2024]

Would using coin ledger still be good using in 2025 ?

[@janeth3139]

If I’m understanding this correctly, if you only purchased crypto for the first time in the last couple of months and you haven’t sold any yet you wouldn’t need this form yet, correct?

[@Original22]

Only when you sell for a capital gain

[@mikef6063]

Any time to trade one crypto for another, you “sold” and its a taxable event

[@janeth3139]

@ good to know. I haven’t done that yet

[@cryptotaxgirl]

Thanks for the shout out :)

[@CryptoDad]

No problem. By the way, one commenter pointed out that there is a typo on your website: it should say "Our expertise in UNmatched" not "Umatched"

[@cryptotaxgirl]

@@CryptoDad fixed! Thanks for pointing that out

[@ZENergyTarot]

So much for DECENTRALIZED.

[@escalade8759]

Done! Thank you kindly.

[@jonathansnow2613]

No thanks. I will keep using decentralized exchanges, and moving my money through various wallets behind an encrypted network connection. There's no legitimate access to see what I held, hold, or will no longer hold, at any date, nor what I exchanged what for, or who, what, where, why, when. It's my own legally private information (per the legalities as they once stood). Nobody has a right to know my personally sealed wallet information (decentralized). They can see my technical bank (I agreed to sign up for), nobody is allowed to see my money otherwise. This is the whole point of decentralized investing/banking. The government is out of control, and this is just adding more law noise to the whole landscape. People got into crypto originally to escape the government's relentless onslaught of laws and greedy pursuit of ever increasing taxes & inflation. The government doesn't have the manpower to pursuit all of the people that they think are violators of these new "rules". Unreal.

[@SeanChuma]

Do you think the screen shots would need to be of each wallet address, or of the list of balances?

[@innopva9973]

good info here

[@user-mm6xi3er5u]

Good job. Thanks for info. I have always filed FIFO. Exchanges always provide information on acquisition date and cost (if applicable) when purchased or transferred to their exchange.

[@tillasmax]

this is a stupid and insane law. what if some of your crypto investment are over 10 years ago and you got your crypto from exchanges that dont exist anymore or from other places that make it very hard to prove a basis.

[@CryptoDad]

I’m not a tax expert so you might wanna verify this with someone more qualified. But I think your only recourse here is to use a zero cost basis if you have no way of knowing what the real cost basis is.

[@Pooswap]

It’s not a law.

[@user-mm6xi3er5u]

Safe Harbor form. You know what you paid for your crypto, unless you have dozens of coins purchased over past ten years.

[@oncallempath]

Thanks for the heads up. Great video! What about when the exchange goes under? I lost all my coins on Celsius and FTX. Will that be a loss on my taxes?

[@MarkVA71]

Not a law. IRS is still making up their own rules under the Chevron Doctrine which was just thrown out by SCOTUS.

[@peacew6]

Does FIFO mean "first bought, first out" or "first deposited, first out"? Let's say I bought two LTC coins in 2018 and put them in hardware wallet A. Then, I bought three LTC coins in 2020 and put them in hardware wallet B. Later, I withdraw the two LTC coins from wallet A and deposit them to wallet B. Now, wallet B has a total of five LTC coins. Using the FIFO method, if I withdraw one LTC coin from wallet B (using the new wallet tracking method), am I withdrawing the coin I bought in 2018 or 2020?

[@Dave_D.]

Typically it's based on the purchase date. So first in are the ones you bought in 2018, no matter how many times you've moved it.

[@jdubs712]

@@peacew6 if you sold one of the coins from the co mingled wallet the cost basis would be the purchase price from 2018 using the FIFO method. Generally moving coins from wallet to wallet is not a taxable event. (( not tax advice of course))

[@peacew6]

@@Dave_D. So, if I want to sell the coins with higher cost basis (for lower tax) then all I have to do is transfer two coins out of wallet B to another wallet. Now, I have two separate tax lot coins in separate wallets. Assuming, I know the cost basis of the tax lots, I can choose the one with higher cost basis to sell. In the context of this new IRS provision, I heard some people talking about "optimizing" their wallets by grouping their wallets by the cost basis. The point is to sell the ones from the high cost basis group first. But it turns out I don't have to do all that work. As long as I know the cost basis of each lot, I can move them around in order to avoid selling the low cost basis.

[@Dave_D.]

@@peacew6 I'm not sure....at one time, you could sell using different methods, such as FIFO, HIFO, LIFO, and even specific coins if you could ID them. I've never bothered w/ anything besides FIFO as it's just the easiest to keep everything straight. The screenshot at 1:50 says FIFO will be the only method starting in 2025....now how this form relates to that, and what coins (only pre 2-25?) it refers to, I don't know. Ultimately, I don't know if it really matters. If I sell one for $100k that I bought at $50k in 2023 (vs one I bought at $5k in 2017)....sure, right now the gain is less, but eventually I will sell that $5k one....for $200k? $500k? It will all even out eventually....unless of course you sell SOME during the bull, buy back during the bear, and sell the 'new' ones in the next bull and NEVER sell those from $5k.

[@peacew6]

@Dave_D. Yes, using your example, I will hold the coin with 5k cost basis until after I'm retired and income is much less, in order to lower gain. Sure, if each coin becomes $1M then the tax difference is probably less significant. If you live in a high tax state like CA, that's still significant though.

[@ericventura5545]

What if someone stole crypto from you. Do you still pay taxes on that

[@cryptowinterbull]

mmmm im convinced you jist do cost basis - cap gains fuck this complex crap 10k in , 100k out. pay cap gains on 90k regardless of the wallets.

[@mcb7768]

Have one little problem with that form It says Global Allocation What about Specific Allocation Change that wording before you sign otherwise you are stuck with GLOBAL

[@UpUpDnDnLtRtLtRtBAStart]

The only way to beat this is private onboarding and off boarding of funds. Period

[@Sol3Sol41]

i’m not a citizen do i have to stress it?

[@arturonavarro66]

Is this the beginning stages of taxing capitol gains on crypto you haven't sold ?

[@Shirley-n-Maryland]

I was informed to PRINT IT, THEN GET IT NOTORIZED of me SIGNING and dating it. That way the notary confirms it was signed BEFORE DEC 31st.

[@Ken-jg9kp]

Is this only applicable for 2024 and prior tax returns, but going forward we're required to do FIFO and wallet by wallet? Even for assets acquired prior to 2025 but haven't sold?

[@nope96872]

What country is this for please. Usa or aud ?

[@dfilion3]

Only American think they are the world. It's annoying. So USA. Australia is getting demanding also. I would leave both country if I had a fortune in crypto.

[@bobbyjunior3580]

I don't get it. Very strange people are just hearing about this and it's like couple days before the new year. I have to sign the form and don't give it to the IRS. So do I give a copy of this to my accountant and when does the IRS need this form

[@audislowroad]

Chevron

[@jenjen9266]

@@audislowroadthe chevron case was overturned How can the IRS DO THIS? And congress has not made any crypto laws And XRP was declared a currency years ago by the court how can we be taxed on it ?

[@MarkVA71]

So after I buy crypto on Coinbase, when I transfer it to my cold wallet I have to count that as a sale?? WTAF?!

[@Kurosaki54]

This was very vague... why did you say we should fill this out, or what was said other than download and sign this from her site and fill it out before Jan 1

[@awidesigns]

Better email that form to yourself to have a digital record it was done before end of year.

[@andyrcampbell]

Why cant you sign and date several forms each for a different accounting standard and decide which to use later ?

[@jttention4885]

Where do I get the Safe Harbor form

[@electrofryed7239]

Just remember. The IRS can only deal with USD. BTC is not USD, If you don't sell to USD, you can't be legally taxed. Only give Caesar what is Caesar's.

[@explorarehoy]

Is this needed if you did not sell BTC or crypto? 11:30

[@timothyoreilly2842]

So why does this need to be one now, why not at tax time? Back date it is after I see my accountant.

[@randycannon723]

I don't know what to do because I've only bought crypto since 2021, and my portfolio is up thousands of percent but I've never sold and don't plan on until its much higher, how can they tax me on crypto i never sell??

[@Original22]

You only pay when you sell !

[@CryptoDad]

This!

[@suhubamcghee3217]

Can you link the form for the safe harbor form, i don't see a link. Thank You

[@CryptoDad]

The link is in the description. The heading is “here’s a link to her form.”

[@adixiemoon]

Wouldn’t it be wise to sign this form an email a copy to your accountant so the form will be verified that the form was signed before the 1’st of the year 2025?

[@Sandruby]

I'm notarizing my form

[@MichaelFalkowski-d9v]

So do we now have to select fifo? I’m confused…seemed like you were saying that but later on saying we still have options?

[@cpresle3]

Wow! So helpful 2 days before the end of the year! Oh whoops, too late! Thanks anyway! Smfh

[@Alpacastan21m]

Shouldn’t the form be notarized? Since you can download and just backdate the information?

[@kdrichard6052]

How do I find the amount I originally paid for the crypto? I’ve been HODL on my hard wallet and not trading.

[@htownkimmie3762]

How does this benefit us?

[@3pdad]

What if I have only used one exchange and transferred everything over to just one cold wallet?

[@CryptoDad]

Then you’re only dealing with two wallets theoretically and it won’t be that complicated

[@MUSE_AND_MEDIA_ON_COINBASE]

What do I do after I sign the form? Do I just hold it until I meet with my tax person and give it to him?

[@Original22]

Go to your bank and get it notarized before the 1st or it’s useless

[@Verisno1992]

The only reason they want the info is because they no longer control it once it hits the exchange and they want to track it and they have no business tracking it

[@The_magic_mountain33]

So each fifo goes by each exchange or wallet exchange.. long as you are not transferring crypto from wallet to wallet from exchange to exchange , each has a separate fifo ?? Am I right?

[@kalidreamn3386]

Voluntary comply if you want

[@JPF-vq1bs]

What if I haven’t sold anything?

[@Hawxaw]

Is the FIFO standard across all wallets or per wallet? If I have a “spending” with funds from 2024 wallet does that spend get taxed based on the gains from my “savings” wallet from 2020 for instance?

[@MrMagic8man]

What if you haven't cashed out yet and the long term capital gains tax is 0%?

[@barrios160679]

Is it a selection for life, or just for one year?