I mined cryptocurrency in Belgium in 2019 as a side experiment. Now, its value surpasses 50K. How should I file taxes given missing records and its initial negligible worth?
My experience with cryptocurrency tax filing involved dealing with limited records, so I understand the challenges you face. Even if the mining was experimental and the initial value was low, the current significant increase makes it necessary to address the tax implications. I found that consulting a tax advisor who specializes in digital assets proved indispensable. They suggested reconstructing your records using available data such as exchange histories and screen captures. It is also worth preparing a plausible explanation for the initial low valuation and any discrepancies in your documentation to mitigate potential issues.
Reviewing my own experience with cryptocurrency tax filing, I found it beneficial to start by gathering and cross-checking even the smallest pieces of data available from blockchain explorers, wallet history, and any exchange records. Missing documentation can be partially reconstructed, and showing a logical trail may ease the tax filing process. Consulting an accountant with practical digital asset expertise can provide strategic insights and help ensure that the reconstructed records satisfy regulatory requirements, even when initial records were lacking.
hey, i faced similar issues with missing info too. try recovering transaction details from blockchain explorers or any old wallet backups. even approximations help if you explain the gaps. chatting with a crypto-savvy tax pro might save u a lot of troubles.