Thursday Thoughts - 03/16/2023
Here are my Thursday Thoughts, a short list of the most interesting things that I’ve read, heard, and/or watched over the past week.
US taxes are due in about a month. I spent the last week putting everything together to file my taxes. It was a struggle to get all my cryptocurrency information together.
That’s one of the pains of decentralization. One company doesn’t have all your transactions and can hand you a 1099-B with your capital gains. You have to compile all that information yourself or pay someone to go through the blockchain and sort through all the data.
So after doing exactly just that, I have completed my 2022 taxes. I put together a list of all the services and resources I used. Hopefully, this will make your taxes easier.
What I Bought:
I have been using the online version of TurboTax for the past 3 years. I found out the desktop version costs about half as much as the online version. I made the switch this year and didn’t notice that much of a difference between the two versions.
Koinly connects to a wide range of blockchains and exchanges to import transactions. If the blockchain isn’t available, there’s a function to upload transactions through a CSV file. Once it has all the information, Koinly sorts through everything and spits out a tax report. The report has short and long term capital gains/losses, incomes, and miscellaneous costs.
I tried a bunch of different crypto tax software and Koinly was the easiest to use. It also seemed to have the most accurate reporting.
MaxBrand99’s Axie Tax Tool
Axie Infinity runs on the Ronin side chain. As a result, there’s currently not a wide range of integrations. So I couldn’t pull my Ronin transactions into Koinly automatically. Thankfully, MaxBrand99 developed a tool to comb through Ronin, grab transactions, and spit out a CSV file.
Lila’s Ledger does the same thing as MaxBrand’s tool but for Defi Kingdoms. It has the ability to go through the Harmony, DFK Chain, Klaytn, and Avalanche blockchains. I used this tool to get all my DFK transactions into Koinly.
What I Read:
Understanding crypto taxes
Coinbase put out a guide for understanding crypto taxes. This article helped me understand what actually gets taxed. It also broke down what is considered income vs capital gains.
How To Do Your TurboTax Crypto Taxes in 2023
I got the numbers I needed from Koinly. But how do I actually put those numbers into TurboTax? Thankfully, Koinly put a post with screenshots to step you through the process. The instructions saved me from wandering around TurboTax for the information.
What I’m Pondering:
What you hate in others is usually what you hate most in yourself. The people who drive you crazy do so because they reflect back at you the worst aspects of yourself that you have either tried to deny or overcome.
Tags: #quotes #crypto #money #axie infinity