[ale] [OT] (but computer and cryptography related) Bitcoin, Litecoin

[Phil Turmel]

On 03/31/2013 11:56 PM, Ron Frazier (ALE) wrote:

I can't answer the other questions--I have no experience with either
digital currencies nor precious metals markets--but I can answer this:

> And, how the ##@#$$# do I figure out what my capital gains are so I can
> pay my taxes, since every coin has a different cost basis?

You can individually pick which assets you choose to sell, thereby
targeting the cost basis of the transaction as a whole.  Say you buy
$500 of an index fund every month:  When you sell, you can choose which
month's shares to sell.  If you are otherwise having a bad year
(lowering your tax bracket), you might sell the oldest/cheapest to take
the large gain at a low rate.  Then in a good year, you might want to
sell recent shares, with a low gain.

Anyways, for bookkeeping purposes, if he item is serialized, you need to
sell them by serial number.  Otherwise, just document in your records
which original purchases you are cancelling in each sale.

(Stock brokers do all this for you, for a fee of course.)

Phil