Ignoring an exchange

Hi everyone I have a question!

So the situation is currently like this I have been using 4 exchanges (Coinbase, Poloniex, Livecoin & Binance). Coinbase and Poloniex are my primary ones, which means that is where most of my investment is placed. Now that’s all good, but the ‘issue’ lies with the other two - Binance and Livecoin.

Let’s start with Binance, the obstacle here is I have over 6000 transactions, and these transactions are only concerning a deposit of about 90€ in fiat, which was sent from my Coinbase account (and it is worth a lot less now). Now, I have never withdrawn from this exchange, and with so many transactions I think I never will. Let’s say I go as far as giving the account away to someone else. In this case, if I used this strategy (here comes the question) I would not need to include these transactions or more specifically, this exchange, in my tax report? As this would basically be me transferring crypto to another person.

First of all, the reasons why I would want to do this is because of the Koinly tax plan for this many transactions cost more than what the Binance account is worth. Also, when there are so many transactions it is easy that an error could occur while syncing the wallet in Koinly and there is no overview.

The other problem is Livecoin, I don’t have the CSV files and they delete the logs every 30 days. So I don’t have any information, and I have no choice but to not include it (also I only deposited a small like 20€, so I don’t see much I can do)

To summarize, would this be a smart way to approach things? Just to point out, I’m not trying to “avoid” paying taxes, I don’t have any gains anyways, so the tax would in this case be in my favor. Thanks for any help in advance!

Hi, it would be best to check this with an accountant first since not disclosing transactions could potentially be a problem. However, if you are dealing with such minor amounts then perhaps just pay a full profit on the assets you transferred to binance/livecoin. This is usually what people who traded on inactive exchanges like Quadriga do.

Please note that this is not tax advice.

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