You don't report income on every item you shuffle.
In the spirit of US law (since crypto is t precisely classified), if you are a professional trader, you only pay taxes on your overall annual trading profits, not each individual trade. Same as how a a retail store doesn't have gains and losses on every individual item in inventory.
No, that’s not true. The IRS has given guidance on this.
> explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how longstanding tax principles applicable to transactions involving property apply to virtual currency.[0]
Also, every crypto tax software does exactly what you say is not required. A bit of signal there.
If you use one of the various mark-to-market rules, then you may well “only pay taxes on your overall annual trading profits”, but you pay it every year on unrealized gains too. Choose your poison.
In the spirit of US law (since crypto is t precisely classified), if you are a professional trader, you only pay taxes on your overall annual trading profits, not each individual trade. Same as how a a retail store doesn't have gains and losses on every individual item in inventory.