Are my small crypto losses worth reporting on my tax returns?
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I’ve only had crypto losses this year, and my total investment is pretty small. Do I really need to report every single transaction on my tax return? I'm wondering if properly declaring these losses now will help protect me from a tax notice or penalties later on, even if I don't owe any tax today.
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It’s a good idea to report even the minor losses you incur in crypto. Organizing your tax records now can help lower future gains and reduce your tax bill later. Even if you don’t report every small trade, maintaining good records can save you from future penalties or notices. Being honest about your filings today can help you avoid problems with tax authorities later.
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Reporting small crypto losses can be frustrating, especially when it comes to small gains. However, avoiding them might result in bigger tax problems later. It seems we need simpler tools or clearer rules from the IRS instead of tracking every penny ourselves.