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What to Do If The Data From Your Crypto Account Is Messed Up – Tax Tips

September 6, 2023 By Jessica Freeman Leave a Comment

three panel picture of two frustrated men holding their head or rubbing their eyes with a center panel of tax forms, a pencil, a calculator, and a yellow stickie note that says “need help?”

(This post is from our series of Facebook Lives. Catch the next one on our Facebook channel.)

Introduction

Welcome to another Beta Virtual Assistance Facebook live session. Today, we’re discussing crucial tax tips on what to do if your crypto exchange account experiences issues, vanishes, or simply doesn’t provide you with the information you need for tax reporting.

The Importance of Account History

Imagine this scenario: You’ve been using a crypto exchange, and suddenly, the website disappears, the app stops working, or it appears to be insolvent. It’s a concerning situation, and you can’t access your transaction history or other essential data. This isn’t an isolated case; many crypto enthusiasts face similar issues.

Act Early and Keep Records

filing cabinets with organized books and records on top

Our first recommendation is to act proactively. Don’t wait until tax season to gather your crypto records. Instead, keep detailed notes of every crypto-related activity you engage in. Whenever you open or close an account, make a record.

Download Your Data

The next step is to download your transaction history regularly. Some exchanges offer APIs for automated data retrieval, which is the best option. Alternatively, look for options to download your data as a CSV file or an Excel spreadsheet. In the worst-case scenario, take screenshots of your transaction history on the exchange platform. It’s not ideal, but it’s better than having nothing. These screenshots can be used later to recreate your data if needed.

Know Your Money Flow

One crucial aspect is knowing how much money you transferred into and out of your crypto accounts. Review your bank records to determine these amounts. This is a fundamental step to reconstructing your crypto activity.

Building a Reconstruction Strategy

If you find yourself without access to your exchange account history, there are several strategies to reconstruct your crypto transactions:

  1. Initial Investment: Start by noting the amount you initially invested in a particular exchange or protocol.
  2. Withdrawals: Keep records of any withdrawals you made from the platform.
  3. Transfer Traces: Identify if you transferred tokens within or outside of the platform. Missing trades can be estimated based on the value on those specific dates.
  4. Notes on Manual Trades: If you made manual trades and you remember the details, provide those to your tax professional.
  5. Periodic Balances: If the exchange provides balance snapshots, use those to estimate your crypto activities over time.
woman confidently sipping her coffee as she pets her dog and looks at her computer

Conclusion

In the world of crypto investing, keeping meticulous records is essential for tax reporting. Whether you’re dealing with exchange issues or not, staying organized and proactive will save you from headaches during tax season. If you have any questions or need assistance in handling your crypto tax situation, feel free to reach out. We’re here to help.

Remember, we’re live on Tuesdays and Thursdays for tax tips and Saturdays for strategy tips. Additionally, check out our workshops and courses to enhance your crypto knowledge. Share this valuable information with anyone you think might benefit from it. Thank you for joining us today, and we look forward to assisting you further.

Find out more about this topic by watching our YouTube video below.

YouTube video thumbnail - What to do when your account is messed up

Related posts:

  1. Crypto Tax Tips: How to Navigate Different Types of Crypto Income
  2. Countdown to the USA Crypto Tax Extension Deadline: Your Ultimate Guide
  3. Unmasking the Crypto Superheroes: How Bitcoin and Co. Are Saving the Environment!
  4. Crypto Investing: Cultivating Your Wealth Like a Pro Gardener!

Filed Under: Cryptocurrency, Summary, Taxes, Videos Tagged With: crypto, tax tips, taxes, videos

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