File this for your crypto taxes to take advantage of the IRS safe harbor period before 2025!
Contact us at https://www.digitalfamilyoffice.io for info
Contact us at https://www.digitalfamilyoffice.io for info
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LifestyleTranscript
00:00Have you moved assets off of an exchange into a cold wallet?
00:04Well, you need to make sure that you are selecting a global designation for how you're going to be allocating your cost basis in 2025.
00:10If you've moved a bunch of assets into wallets off of exchanges, it's hard to track your cost basis,
00:15especially if you've used any DeFi protocols or other staking things or anything else to be able to generate returns or borrow against your assets.
00:23So if you've moved them around, anything aside from just holding them, it's maybe more difficult to track your cost basis.
00:30So the IRS is providing you a period of time here at the end of this year where you can give your wallets a global cost basis,
00:37where you provide the average value that you purchased the assets,
00:42and you give that designation to all of the assets in that wallet so that you don't have to go back through and be meticulous about,
00:48I bought this many then at this price and this many then at this price and like do all the accounting that's crazy, right?
00:55So they're giving you a period of time where you can just say,
00:58hey, this is the average price that I bought all these assets at.
01:01And moving forward, any sale of these assets, all of the assets in this wallet are going to be this cost basis.
01:07We have a form through Digital Extension Group that allows you to do that,
01:11to make sure that you are in compliance with the 1099 DA that you're going to be using to file your taxes in 2025.
01:18So if you don't understand any of that, just email us.
01:21We'll send you over the form to make sure that you're in compliance
01:23and that you are going to be able to make sure you're taking advantage of the safe harbor period at the end of this year.