How do I accurately report Bitcoin gains to the IRS if I used multiple exchanges?
I've had a busy year trading Bitcoin and a few other digital assets across several platforms like Coinbase, Binance.US, and Kraken. Now that the tax season is approaching, I'm feeling a bit overwhelmed.
Since I frequently moved my BTC between these exchanges and even into a cold storage wallet, Iām worried about how to calculate my cost basis correctly. Each exchange only shows a piece of my transaction history, and none of them seem to track the transfers I made between platforms.
I have a few specific questions:
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Do I need to report every single 'crypto-to-crypto' trade as a taxable event?
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Which IRS forms do I actually need to fill out (is it just Form 8949 and Schedule D)?
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Since the IRS is getting stricter, what is the best way to consolidate all my data from different exchanges to avoid an audit?
I want to make sure Iām fully compliant with US tax laws for 2026. Any advice or a step-by-step guide from someone who has handled multiple exchanges would be greatly appreciated!