I fucked up – An idiot with 100k+ transactions for a loss and can’t figure out how to report taxes now

My friend made a swing trading crypto bot and I threw 10k at it and let it rip with him in Beta. Cut it off after about 2 months and 4k in losses. 123k transactions happened in that period on Binance.

I’m also an idiot who didn’t know I had to report every transaction. Everything I try to use is just breaking. I ponied up $1500 to [Cointracker.io]( for their premium version that covers 100k+ transactions, but can’t get anything out of that system either. When I try to connect Cointracker via Turbotax, it errors out everytime.

HR Block suggested using cointracker also, but then it doesn’t appear there is anywhere to actually import anything, so I don’t know why they suggest using it.

Anyone report on huge number of crypto transactions have some advice?

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Edit: United states.

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48 thoughts on “I fucked up – An idiot with 100k+ transactions for a loss and can’t figure out how to report taxes now”

  1. Not only did the bot made you lose 4k, it even messed up your ability to report your taxes on crypto

    Bad bot lmao

    Try koinly op, hope you the best lol

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  2. Holy freaking shit 123,000 transactions??????

    My god, how I appreciate living in a country where crypto taxes aren’t such bullshit.

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  3. Not tax or financial advice.

    If you’re using turbo tax to file there is a section to report your investment gains/losses. When they ask if you received a 1099 from your broker you can say no then you can submit a summary of the transactions. You can choose short or long term (most likely short for you) and put in the proceeds and cost basis on the transactions. This you will need to find out by adding up all of the value of your sales (proceeds) and all of the value of your buys (cost basis). I believe the easiest way to do this is to download an excel sheet of all of your transaction and sort the buy/sell column so that the buys and sells are separated then take the sum for each section.

    It would probably be a good idea to take an extension on your taxes as well to get this sorted out

    None of this is tax advice and could be 100% incorrect

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  4. Might want to go ahead and fill out the extension form. This shit is due tomorrow, I have doubts you will be ready in time.

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  5. Dude… you lost money. Who cares about every transaction.

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    Report money in and out of your bank account. And thats it. If the IRS wants to audit you, let them. They can sort through and give you a bigger refund as a result

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  6. You spent $1500 trying to figure out how to claim a $4000 capital loss? I’m not American but I suspect regardless of what your income is that wouldn’t even be worth it anyways.

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  7. Dude… File an extension. You’ll need it. Call the IRS help desk, explain the situation, and ask them how to proceed. Your 8949 would be thousands of pages long (on the order of 8,000 pages). Just guessing, but it doesn’t seem likely that they want to receive that any more than you want to create it.

    FWIW, you really do want to file the loss though. The loss can offset other taxes or be carried forward to offset future gains.

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  8. Ok, other than having a pro handle it you can handle it yourself by using excel to aggregate transactions by date. You’ll want to change the date column data that usually has a time stamp to just plain dates. Then sort it all by date and use a SUMIF formula to add all the gains and losses for that date.

    Then you make a csv file with just those dates and any of the crypto tax trackers will be able to process it for under $100.

    Just spent over 30 hours this week wrangling with gigantic spreadsheets and creating custom CSVs and then fixing problems with the tax websites. But if you’re using all exchange data it should be super easy compared to what I had to do.

    Seriously, ask for a refund from coin tracker.io, since you lost money you don’t even owe money the primary reason to file is to claim the loss!!! Don’t spend $1500 to have some website add up your losses, crazy.

    Let me know if you need help with excel. You will need a decent computer since you have so many transactions but it’s not hard.

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  9. I wouldn’t stress that much about reporting a loss. A profit, even of $1 on the other hand… they’ll come after you for that. Personally I wouldn’t worry about it and report just the net loss. You are way overthinking this in a year where millions of Americans actually made profit trading crypto. They’re more interested in getting their hands on their percentage of that than they are making sure you get a tax break for your relatively small losses.

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  10. I think we’re probably all going above and beyond to do the right thing. Honestly that reporting form was never meant for retail trading or crypto trading. I am positive the stock guys that do HF trading don’t report every single trade. Of course retail trading platforms tend to have better reports but still. I mean come on now. The guys with food trucks don’t have to report every individual sale and it’s cost basis. While I know that pointing out the flaws in the system doesn’t help you, in your shoes, i’d make a valiant effort to do the right thing and then if I got audited, I’d ask them to show me how to do what they require and I’d be more than happy to ante up with interest and penalties and do better next year. Not saying it’s the way to go, but I was planning on experimenting with some bots on nonKYC exchanges to test the waters.

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  11. Pretty sure they’d change the law if everyone did what OP did. Record a video of you lighting money on fire and send it to the IRS for their records.

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  12. Explain them the situation, i dont think they want to analyze 100k transcation too and because you are not on profit its a really not that big of a deal you are fine brother

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  13. I had 1.7M raw transactions.. bitcoin.tax was the only one that could handle my trades.

    It works really well if you feed it a csv of your trades, which if you’re running a bot you likely already have a DB you can query this from.

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  14. Try this out.

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    Take your account balance on 01/01/2021 in dollars.

    ADD all withdrawals dollar amounts

    SUBTRACT all deposit dollar amounts

    SUBTRACT the account balance as of 12/31/2021 in dollars.

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    Then list that as your 1 line item on the form 8949 on your IRS.

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    Done.

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    IF the IRS audits you (you have a 99% chance they won’t) , dump the 123k transactions on them and tell them to have fun.

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  15. Holy shit! I maybe had a few hundred transactions to report, which led to 56 pages when I printed my return. At this point I wonder if you’ll be able to write off a pallet of paper next year. Jeebus!

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  16. Don’t use turbo tax or H&R Block. That’s your problem. Take the cointracker CSV file to an actual tax professional and they’ll do the rest. Just be sure you have everything you used in there.

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  17. The IRS wants a very educated estimate, they aren’t picking your report apart. Report to the best of your ability.

    An overall P/L will suffice.

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  18. Reach out to the service you are using and let them know your problem. More than likely they would use this example to improve their service. You might be surprised how helpful they can be

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  19. File an extension, get it sorted out, and get ahead of it next year. Oh yeah, and fuck a trading bot right in its tiny little metal arse ole. Lesson learned.

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  20. Yeah I first started in crypto in 2021, and since I started small then caught the fever in the 4th quarter it wasn’t the best time to be a noob. But it was interesting and I made way to many too many transactions…lessons learned! Since I didn’t get bigger in until later in the year I ended up down due buying highs, another valuable lesson learned, and to the crash in November and December. All the numbers on the forms I was able to get confirmed that, so my thought was I’m not dealing with reporting all this since I didn’t make anything overall. If they want to audit me and sift thru all that only to find out I don’t owe them anything then be my guest

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  21. i dont have that many tx, but i have like 3-4k and theyre lots of arbitrage, so sending from exchange to exchange without cost basis being tracked. i used hotbit which doesnt have api or csv downloads for like 700 tx which i just dont have the patience to manually enter.

    cointracker and taxbit are wildly off. tens of thousands and neither is correct in the first place. both missing hundreds of cost basis and im honestly just so done with it. every time i make progress, i run into a new issue that causes issues with things ive solved.

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  22. So I just filed mine last week using cointracker and HR block. You can group trades together if they are of the same, so like BTC -> LTC. Then you can put in your but date of the date you made the first buy, then sell date of the next day, you can select various for your buy dates also. Then you unit the overall total you bought for and the overall total you sold for… In my case I did like 200k in buy and 201k in sell, so I had short term capital gains of 1k. You don’t have to submit 500+ pages of 4463s, I think that’s the form to list each transaction. Cointracker should have a bottom to reboot to turbo tax download which will have the summation that you can use.

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  23. Ez, 10k in, 4k in losses. = your capital gain or loss. If they ask for details. Export data to csv and let them have fun. 99 out 100 they’ll just take your $ figure u declared as u sign that its truthful anyway so its on u, theyre not gonna waste time checking 100k transactions for a 4k loss. Disclaimer: I am not a financial advisor or tax agent.

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  24. Holy fuck OP. I’m sorry. I had 4k transactions, a lot from a bit that lost me too on, and I used koinly and it worked right… I think.

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  25. UPDATE: Finally got the condensed turbotax file to download from Cointracker (on like the 20th attempt). I tried every other software suggestion in this thread as well, and none of them could handle this number of transactions.

    Cointracker+Turbotax did the trick. Taxes officially filed. Eat my nuts taxman

    Reply

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