Love this comment! Yes, I pay quarterly taxes in the range of $15–20k/quarter. This year, I will likely up that amount just to be safe. For crypto, I assume the worst at 40% ordinary income tax. I have no intention of not reporting. In fact, I reported 2020 in my first foray into crypto with Coinbase. 2021 will be much more complex with the frequent claiming and compounding, as you pointed out, and I’ve signed up with Koinly to audit my transactions before submitting to my actual accountant. I will definitely check out cointracking.info to see if that is helpful as well! If you have used this software, please tell me more about it!

For my readers, yes, this is a good reminder to report gains and losses. As these laws become more and more distinct, readers will eventually have to withdraw funds to take profits, and as these funds exit crypto into a centralized institution, the paper trail starts and can lead to the rest of your crypto activity, even from years past.

I’ve always wanted to write about crypto tax because no one (but you maybe) knows much about it! But it is a complex subject so I wanted to run through it myself first. I think it could be a hot topic in the coming months! Thanks again for the comment and would love to know more about this subject, as well as cointracking.info!

Thanks for reading!