@kristhuy I looked into a service like Koinly, and there are simply too many transactions to make it viable (the cost to use the service would exceed any realized gains).
I've been sorting out the transactions per month and putting them into spreadsheets and I can run calculations that way quite easily. But the question is which calculations need to be made?
For example, the trade logs show the rates for each pair (ex: XRP/BTC) but not the JPY value of each at that specific point in time. Does that matter? I sure hope not, because I'm never going to be able to get that information. I can obviously calculate the gains in terms of a single crypto asset (I do my transactions in ETH), and then convert that with a monthly average exchange rate.
I assume that the main concerns for tax purposes are current holdings and realized gains. I'm hoping that I can just get away with reporting the current balance on the exchange, report realized gains (crypto transferred into BitFlyer and sold for JPY) as miscellaneous income, and then have the transaction reports as evidence if the tax man comes a calling.
Obviously I need to do some more research into how other algotraders are reporting taxes. I was just hoping someone here had some ideas.
Edit: it looks like each trade is taxable? I can calculate number of trades, profits, losses, fees etc in terms of the quote currency. But again, the exchange rate to JPY for each transaction will need to be estimated. This is not going to be fun
I've been sorting out the transactions per month and putting them into spreadsheets and I can run calculations that way quite easily. But the question is which calculations need to be made?
For example, the trade logs show the rates for each pair (ex: XRP/BTC) but not the JPY value of each at that specific point in time. Does that matter? I sure hope not, because I'm never going to be able to get that information. I can obviously calculate the gains in terms of a single crypto asset (I do my transactions in ETH), and then convert that with a monthly average exchange rate.
I assume that the main concerns for tax purposes are current holdings and realized gains. I'm hoping that I can just get away with reporting the current balance on the exchange, report realized gains (crypto transferred into BitFlyer and sold for JPY) as miscellaneous income, and then have the transaction reports as evidence if the tax man comes a calling.
Obviously I need to do some more research into how other algotraders are reporting taxes. I was just hoping someone here had some ideas.
Edit: it looks like each trade is taxable? I can calculate number of trades, profits, losses, fees etc in terms of the quote currency. But again, the exchange rate to JPY for each transaction will need to be estimated. This is not going to be fun