Some examples of things that are complicated:
- Trading ERC721 tokens (there are no tools to track down these transactions, track cost basis, etc - I ended up spending days hand crafting scripts to retrieve this data)
- Opening a cdp on something like Makerdao (which parts of this are taxable events / how do I file it?)
- What counts as a wash sale? [0]
- What are allowable methods of tracking cost basis?
- How do I handle hard forks?
Some of these are partially answered, but none of it is clear at all.
[0] https://help.cointracker.io/taxes/us-taxes/do-wash-sales-app...
By planning to do so from the beginning. "I forgot to keep records" isn't going to be something the IRS really cares to hear.
Just use bitcoin.tax to keep track of it like everyone else does. Or presumably OP's new tool.
I only ever played with small amounts for fun, and in the long term, I took losses. But it's very difficult for me to compile all my trades for tax reasons. I set up automated trading on half a dozen different exchanges (some of which no longer exist) using half-baked python scripts with no logs. How on earth do I compile a Form 8453 showing all of those thousands of trades? I could spend months tracking down all the public keys I used and use blockchain explorers to compile a list of transactions... but I would not describe this as easy