Seriously, this is breaking my brain. #asknostr View quoted note →

That's not the problem I am having. Per the safe harbor information, we are permitted to now reallocate basis to older coins but just once and before January 1. So, if you have hundreds of little lots and you want to reallocate basis around the various lots (purchases) so that you can lock in Highest In First Out basis notwithstanding the fact that you plan to report FIFO basis going forward. The reallocation of basis so that it's mathematically sound is breaking my brain. Put another way, you have the opportunity to give earlier coins a higher cost basis so when you are forced to account for sales on a FIFO basis going forward, you get the benefit of reallocating on a HIFO basis one time right now. But how to do that is alluding me.

Ill try to clarify but its hard when I dont know the solution. What I mean is every satoshi has its own cost basis and you can take the aggregate cost basis and reallocate the cost basis _IN TIME_ but you have to make sure the amount of specific cost basis (e.g. .001cents per satoshi) only to as many satoshis as have that cost basis. It's about shifting the effective cost basis of each satoshi over time but not over the amount of satoshis with said cost basis. How to do that is elluding me profoundly

This is hurting my brain atm. Just tell me what document I should probably consider filling out to protect my ads? What have you found so far?

My conclusion was to make a Consolidated spreadsheet of the purchase price and date and cost basis of every single purchase I’ve ever made on this or that platform and then accounted for the difference between all purchases and the amount in my wallets on a sale by sale basis. I have never sold for usd but have bought things with bitcoin and so based the market spot price at that time I calculated the realized gain by comparing the same amount of Satoshis sold to the earliest in time satosshis sold cost basis also accounting for any btc sent as gifts etc. essentially I reconciled my holdings against my purchases in chronological order starting with earliest purchase (FIFO) and separated those between taxable and untaxable events for 2024. Next year I’ll hire an accountant if i have anymore taxable events which I am going to avoid.