How I do my bitcoin taxes

README.md

TurboTax has no crypto support, it also doesn't support importing CSVs of transactions, and CreditKarma has no ability to import from financial institutions at all (so e.g. wealthfront is an instant dealbreaker for trying it). Square sends out terrible CSVs of transactions and does very little to help you report for the few bucks you made.

1. Import transactions to https://app.koinly.io/transactions
2. Set tax basis to LIFO, print https://app.koinly.io/reports/2019 to PDF
3. Load https://app.koinly.io/transactions?page=1 and find the transactions JSON transfer in the Network tab, Copy as cURL
4. In the terminal, paste this, and either remove the gzip line or pipe through gzip, do this for each page, e.g.:

curl 'https://api.koinly.io/api/transactions?page=1&per_page=20' \
    -XGET \
    -H 'Accept: application/json, text/plain, */*' \
    -H 'Host: api.koinly.io' \
    -H 'Accept-Language: en-us' \
    -H 'Access-Control-Allow-Credentials: true' \
    -H 'Origin: https://app.koinly.io' \
    -H 'Referer: https://app.koinly.io/' \
    -H 'User-Agent: Mozilla/5.0 (Macintosh; Intel Mac OS X 10_14_6) AppleWebKit/605.1.15 (KHTML, like Gecko) Version/13.1.1 Safari/605.1.15' \
    -H 'Connection: keep-alive' \
    -H 'Cookie: _ga=...' \
    -H 'Caches-Requests: 1' \
    -H 'X-Auth-Token: ...' | jq . > p1.json

5. That should be enough to document the final results, but you can also make a PDF by printing each page to Preview and then dragging the first page to the main PDF (https://app.koinly.io/reports/2019).
6. Confirm the values match Koinly:

• Total proceeds: cat transactions.json | jq '[.transactions[] | select(.type=="sell") | .to.amount | tonumber] | add' (this should match the real 1099-B PDF)
• Total cost-basis: cat transactions.json | jq '[.transactions[] | select(.type=="sell") | .from.cost_basis | tonumber] | add'

To check if the numbers match IRS reporting:

1. Download wages/income transcript from https://sa.www4.irs.gov/icce-core/load/gettrans/pages/availableTranscripts.xhtml
2. Copy/paste into MacVim
3. :%s/Recipient:\n\n/Recipient:\r
4. :%s/ SQUA\n.*\n.*\n.*\n.*\n.*\n.*\n.*\n\(.*\)\n.*\n.*\n.*\n.*\n\(.*\)/%%%\1,$$$\2/g
5. :g!/%%%/d
6. :%s/.*\(..-..-....\),.*\$\(.*\)/\1,\2
7. Save as a CSV and make sure the numbers match up (roughly: Square seems to be flooring all numbers reported to IRS, not rounding).

Import to TT:

1. Convert the transactions to a CSV format we can use: cat transactions.json | jq -r '.transactions[] | select(.type=="sell") | [(.from.amount + " BTC"), .date, "VARIOUS", (.to.amount | tonumber), (.from.cost_basis | tonumber)] | @csv' | sed 's/T............Z//g' | gsed "1s/^/Desc,Sold,Acquired,Proceeds,Basis\n/" > out.csv
2. ./csv2txf.py
3. Import the txf to TurboTax.
4. Edit the entry and change the institution name to Square, Inc.
5. Don't edit any individual entires, just check that the values are right.
6. You might need to edit the name of the institution in the worksheet (CMD-t)
7. You might need to answer a question about whether you sold crypto in the worksheets.

csv2txf.py

#!/usr/bin/python

# CSV input format: Desc,Sold,Acquired,Proceeds,Basis

# TXF Format
# ---------------------------------------------------------------------------------
# Header	[V-A-D-^]
# Records	[T-N-C-L-P-D-D-$-$-$-^]

# N321  8949-A, short term
# N323  8949-A, long term
# N682  8949-A, wash sale
# N711  8949-B, short term
# N713  8949-B, long term
# N718  8949-B, wash sale
# N712  8949-C, short term
# N714  8949-C, long term

# V0[version]                                     V042
# A[application]                                  ATax Tool
# D[date of export]                               02/11/2006
# ^                                               ^
# T[type: specific, detail]                       TD
# N[number: 321=short, 323=long, 682=wash]        N321
# C[copy: 1]                                      C1
# L[line: 1]                                      L1
# P[description]                                  P100 Nokia (NOK)
# D[buy date: mm/dd/yyyy]                         D06/01/2005
# D[sell date: mm/dd/yyyy]                        D06/01/2005
# $[buy price]                                    $1000.00
# $[sell price]                                   $1050.46
# $[wash loss, skip on zero]                      $280.81
# ^                                               ^
# ---------------------------------------------------------------------------------
import csv
from datetime import datetime

with open(
    datetime.now().strftime("%Y-%m-%d") + " - square cash - bitcoin transactions.txf",
    "w",
) as text_file:
    # Write the header
    text_file.write("V042\n")
    text_file.write("ABitcoinTaxes\n")
    text_file.write("D " + datetime.now().strftime("%m/%d/%Y") + "\n")
    text_file.write("^\n")
    with open("out.csv", "r") as csv_file:
        for row in csv.DictReader(csv_file):
            text_file.write("TD\n")
            text_file.write("N711\n")
            text_file.write("C1\n")
            text_file.write("L1\n")
            text_file.write("P" + row["Desc"] + "\n")
            text_file.write("DVARIOUS\n")
            text_file.write(
                "D"
                + datetime.strptime(row["Sold"], "%Y-%m-%d").strftime("%m/%d/%Y")
                + "\n"
            )
            text_file.write("$%.2f\n" % float(row["Basis"]))
            text_file.write("$%.2f\n" % float(row["Proceeds"]))
            text_file.write("^\n")