A lot of this is reflective of bad tax advice. Not blaming you just observing.
>Total proceeds - total cost basis = taxable income
Not taxable income but capital gains (unless you're talking about coins you mined, which is indeed ordinary income).
>I didn’t trust a mom and pop shop to properly account this this, especially since there were trades between different cryptocurrencies which makes the situation even more complicated.
It really doesn't make it much more complicated for taxes owed purposes. As far as the IRS is concerned, you can't "buy" anything with cryptocurrency. Its akin to a bartering of capital assets. So if you buy $10 worth of BTC and it appreciates and you use it to buy $100 worth of ETH and then you sell the ETH at $200 you have $190 of short or long term capital gains, depending on how long that all took. Cryptocurrency is property, not currency, for IRS purposes. Each of those transfers is a taxable event, but the tabulations is relatively straightforward and should be well within the grasp of a moderately with-the-times CPA.
As I mention above, get a tax attorney now if these values are anything you can't afford just straight up having to pay, plus fines, at the end of all this.
>Total proceeds - total cost basis = taxable income
Not taxable income but capital gains (unless you're talking about coins you mined, which is indeed ordinary income).
>I didn’t trust a mom and pop shop to properly account this this, especially since there were trades between different cryptocurrencies which makes the situation even more complicated.
It really doesn't make it much more complicated for taxes owed purposes. As far as the IRS is concerned, you can't "buy" anything with cryptocurrency. Its akin to a bartering of capital assets. So if you buy $10 worth of BTC and it appreciates and you use it to buy $100 worth of ETH and then you sell the ETH at $200 you have $190 of short or long term capital gains, depending on how long that all took. Cryptocurrency is property, not currency, for IRS purposes. Each of those transfers is a taxable event, but the tabulations is relatively straightforward and should be well within the grasp of a moderately with-the-times CPA.
As I mention above, get a tax attorney now if these values are anything you can't afford just straight up having to pay, plus fines, at the end of all this.