DISCLAIMER: NOT A SHILL – DYOR – I AM LOYAL TO NO CHAIN – ONLY MY WALLET
Tax season is scary and I’ve kinda just punted this year because I got in so late and made so little last year. However, Im now getting paid in like 4 different tokens (NEAR, BTC, AVAX, LTC) and (hopefully) it will be all my income for 2022.
I have a couple questions that I hope dont come across too shilly, as they are just how I am living day to day. When I get paid in NEAR and AVAX specifically I want to be able to maximize my return from both holding the coin but also turn it into fiat to like, live my little life (they have been volatile).
1. At a basic level, how should I be organizing for accounting purposes? Do I just track what price I got it paid at and what price I sold?
2. Is there any trusted software I can use to execute trades within like a 5-7 day window to try and capture the most value I can, or should I sell and HODL according to my immediate needs?
There are softwares that can help piece the trades together. They’re pretty hit or miss on how they handle DeFi and some unique things like that, but they’re all pretty good on just connecting trades. For some, you simply just plug in your wallet address for each chain and it will read the blockchain for you. Otherwise, you may be able to download a CSV of transactions off of Etherscan or its counterpart on other chains (Snowtrace on Avalanche, for example).
Well I only know about NEAR, but the DEX’s on their chain don’t report anything. Record the number that hits your bank account whenever you turn it fiat. The most important thing is paying as little taxes at possible. Pay a fat ass fee and keep the money in the ecosystem rather than pay it in taxes.
Lol. Taxes are maybe the worst in the world. In my country, Argentina, We have lots of taxes that are useless. Inflation is always rising and so do poverty. We are turning into Venezuela soon. In my case, I’m trying to change my destiny investing in ETH, LUNA + some NFTs projects such as Crayon Dao.