So, I’ve got 5 bitcoins that I’ve been stacking using dollar cost averaging over the last 5 years. Now, if I decide to sell them, how do I report to the IRS which ones fall under long-term capital gains and which ones under short-term? Is there any crypto tax software you all would suggest that can help differentiate between these? Just so you know, I’m based in the US.
If you were a Miner, you have to treat it all as income from a business.
But you also be able to deduct business expenses to offset that income.
As a trader you Treat the coin sale as a stock sale.
Normally FIFO, First IN First Out
But LIFO, Last In First Out is an option.
https://finance.zacks.com/determine-shares-sell-fifo-lifo-9766.html
You really should talk to a tax expert that is familiar with. your local jurisdiction. Advice from random people on the internet that are not familiar with your specific situation or the tax rules in your specific location is likely to be pretty bad advice.