I invested $4,000 in memecoins last year and lost all of it. Want to still report this of course, but I made like thousands of transactions.I autogenerated a Koinly report and my cost basis is way more than $4,000 at $43,000. Is this possible?
Bump
Is what possible?
>>61917882What does cost basis mean? I initially thought it was the amount invested, but I guess it’s just the cost of each purchase summed up. I did do a lot of swaps, so that would explain why it was a much larger amount than what I invested.
>>61917891It's what you think now. Don't swing trade. Put down and hodl.
>>61917579You need to hire an accountant.Every transaction you made was a taxable event. Print out every transaction and hand it to them. Tell them you'll pay them whatever they want just to make it go away. You'll probably owe like $5k in taxes now too.
>>61917959Yeah, I’ve learned my lesson.>>61918037Not doing this. And where’d that $5k figure even come from? You pulled it out of your ass. >Every transaction you made was a taxable eventYou get taxed on capital gains, not losses.
>>61918037Yes I'm sure the boys at Shekelberg Tax Partners are just wringing their hands in anticipation
