r/CryptoTax

Everytime i spent BTC on something i had to log the transaction, calculate the gain or loss, track the cost basis. Multiply that by every subscription or every grocery run and by the end of the year it was a mess. I switched to spending USDT instead for day to day stuff and it changed everything. Stablecoins don't fluctuate so there's no capital gain to report on each purchase. My accountant was happy with me for once.

Ofc I still hold my BTC just don't spend it directly anymore. Keeps the tax situation clean and i don't have to think about it every time i buy something what about this

When you use a crypto reconciliation firm like Count on Sheep or Count Defi, do they normally charge you up front or after. I found someone who will do mine but there isnt much about them online and they charge after. Im scared its a scam.

I called HMRC multiple times, but different staff always told me different stories.

Today I finally got my UTR and I was told if I do self assessment tax return, there are 3 different forms I need to fill in, including one for income although I'm on PAYE.

I have a few tax years I need to get back for my crypto capital gain/loss, which one would you recommend? Through tax return self assessment or Disclosing unpaid tax on cryptoassets?

Also I need to calculate my own penalty and interest? And if it's not correct I also get another fine and interest on top of it?

Have you got contacted by HMRC for more details after the disclosure or tax return if you were a few years behind?

FYI, I have thousands of transactions, I feel the crypto tax rule is very difficult to follow.

Both the monthly statements and the yearly Fill and Account statements for CB Pro only show the 2nd half of 2020...

Is this everybody? I bought the majority of my ETH portfolio in the first half of 2020... so what do I do if I straight up do not have access my transaction data?

Hi

Does anyone else have incorrect timestamps for your transactions in Summ? It looks like the transactions are trying to appear as my local time, but they are off by 1 hour (1 hour ahead). Also, it is not in UTC. I just did a test transaction, and this seems to be the case. Anyone else having this problem? If so, is there a way to fix this so that it shows the correct timestamp and in UTC?

Thank you in advance!

I buy bitcoin into multiple wallets and multiple avenues, with daily, weekly and biweekly dca. What is best way to not manually enter every transaction for tax purposes. Have been buying bitcoin for past year.

My friend is being transferred some BTC and ETH as part of a divorce settlement. The transfer itself isn't taxable between spouses, but when she eventually sells, she apparently has to use what he originally paid, not the current value.

Issue is he's been trading since 2016 across a bunch of exchanges and a couple of them aren't around anymore. Original records for some of it are basically gone.

What do people actually do when the original cost can't be figured out? Use zero? The value at the time of transfer? Some kind of best estimate with whatever you can document?

Hi there, I do crypto and sometimes meme coins. I just had some questions and if anybody could answer it would be greatly appreciated.

1. ⁠I have a normal job which let’s say pays around £40k, but then allegedly I also made another £40k from crypto/meme coins. Would that move me up a tax bracket or is crypto not income tax.

2. ⁠What do I get taxed on when doing crypto/meme coins.

3. ⁠Are there any apps or anything I can use to track my sells, buys, stuff like that.

4. ⁠And what if I lose on crypto? Would I still pay tax.

the 1099DA I received from crypto.com shows its from Payer: Foris Dax Inc. it doesn’t show crypto.com anywhere on the 1099DA document. Question… should my 8949 show this 1099DA is crypto.com or Foris Dax?

I have crypto payments for consulting and capital gains as well. Want to structure it in jurisdiction with not very strict auditing required for source of funds ( although it is clean ), no capital gains taxes, smooth banking that can be structured.

Where should I start from? I need equal freedom as stablecoins + crypto card spending, easy digital banking.

Hi,

I hobby traded some crypto and web3 tokens last year using CoinDCX. My CA has now asked me the following question:

"Please check with coindcx whether these crypto are indian assets or foreign assets? If these are foreign assets then ask for Foreign Assets Disclosure report as required for IT return from coin dx"

I contacted the COINDCX chat, and email and also asked the founder on twitter but have not any response. Anyone here knows actually how are these assets treated by Indian Tax authorities.

I had to help someone value their crypto holdings for a divorce filing and learned a few things that I hadn't seen written up anywhere and wanted to share.

The core issue is there's no official daily close for crypto like stocks have. CoinGecko and CryptoCompare are the two most commonly used aggregators, but they pull from different exchange sets and don't agree.. differences of 1-3% on historical daily prices are normal and while courts don't care about a 2% gap, you need to pick one source and apply it consistently everywhere.

Using CoinGecko for BTC and CryptoCompare for ETH in the same filing is the kind of inconsistency that gets flagged.

Same goes for price type eg. daily open, daily close (midnight UTC), etc it doesn't matter which, but you have to pick one and use it everywhere.

One thing that came up was that they had USDC listed as a 2017 holding while USDC launched in 2018. Sounds obvious but forensic accountants apparently see impossible asset dates all the time and it tanks credibility on the whole disclosure.

Anyway, hope this saves someone a headache.

Since their chat is so slow, sometimes it can take a day to respond, and I would ask a few questions to save time, they would answer 1 of them.
Anyway, I have to manually create a sell of all the coins in Celsius wallet to see the cost basis it uses. Fine. I transferred it to Paypal because it was "returned" to Paypal. Cost basis remains the same. GOOD. Now when I test sell on Paypal for the same amount of coin, the cost basis changed. What?!!?
In trying to simplify or understand their bankruptcy liquidation/recovery, I "sold" all the BTC in Celsius wallet (with set price of $19881.00134) then created a "buy" of the returned amount in 1/16/2024 and set the price of the distribution value ($42972.9948). If I then sell the returned amount of coin, the cost basis it applies is not even close to $42K. Is it gathering the cost basis of all the wallets? It shouldn't right? Especially when the setting is per wallet.
It's a big hold up after another. Bankruptcy liquidation won't let you put $0 because it confuses the software or something so I'd just put .01 USD to make it ok.

It's so hard to wrap my head around the software. I get the big picture of my cost basis, claim value and etc. Just inputting into the software and what shows up is so odd.

***UPDATE: I changed the "buy" of returned amount to 2025 with the set price, and the sell now is correct. I guess the per wallet is not mandatory until 2025. I should just leave the original transaction of 1/16/2024 alone since the inputted numbers are right?
Which means when I "sold all" to get my cost basis (as was told by their support last year) for a coin in Celsius wallet for the Excel calculation, it's technically NOT the right one since it's 2024 and it could be some average of cost across all wallets?

In New York -have btc on coinbase with hundreds of sublots, (purchases, swaps, and a bulk are tiny lots from the coinbase credit card)

I want to transfer it to the eth network through cbBTC -> take out a USDC loan on aave and transfer it to my bank account back through coinbase.

My question is -> is sending it to he eth network a taxable event? (Not because im sending it to a new wallet but because its a different network.) The coinbase app doesn't do a swap or conversion when receiving or sending btc from any network, its all put into the same bucket.

Also will taking out that USDC loan count as income?

And lastly will cointracker be able to handle all this, will it correctly track the cost basis from coinbase to my eth address?

Thanks, in advance

If you’ve bought, sold, swapped, staked, or earned crypto in the U.S., the IRS almost certainly wants to hear about it. Here’s a concise “cheat sheet” covering the basics so you don’t get tripped up at tax time.

1. Crypto is Property, not cash

The IRS treats cryptocurrency as property, not currency.
That means:

• Buying crypto with USD is not taxable by itself.
• Holding or transferring between your own wallets is not a taxable event.
• Selling, trading, or spending crypto can trigger a capital gain or loss.

2. Key taxable events

You’re usually taxed when you dispose of crypto. Common events include:

• Selling crypto for USD (or fiat).
• Trading one crypto for another (e.g., BTC → ETH).
• Using crypto to pay for goods/services (e.g., paying rent with ETH).
• Receiving crypto as payment for work, mining, staking, or airdrops (this is income at fair market value on the day received).

Every one of these events is something you should track with dates, amounts, and prices.

3. Capital Gain Vs. Ordinary Income

• Capital gains/losses: Happen when you dispose of crypto you already owned (sell, trade, spend).
  • Short‑term: held 1 year or less → taxed at your ordinary income tax rate.
  • Long‑term: held more than 1 year → generally lower tax rates.
• Income: Applies when you earn crypto (mining, staking rewards, airdrops, freelance payments, etc.).
  • Treated as ordinary income at the fair market value on the day you receive it.
  • If you later sell that crypto, you’ll also owe capital gains on the change in value from when you received it.

4. What you must report (IRS-style)

Form 8949 + Schedule D are the usual suspects for crypto disposals.
You’ll typically need:

• Date acquired
• Date sold/traded/spent
• Cost basis (what you paid, including fees)
• Proceeds (what you received)
• Gain/loss (proceeds minus cost basis)

Keeping clean records (exchange export + wallets) is how you avoid stress and IRS questions.

5. Common pitfalls to avoid

• Ignoring small trades: Tiny swaps and trades
• Double‑reporting or double‑counting: Income from staking and a later sale of that same token are two separate events; don’t conflate them.

6. Quick tips

• Track every incoming and outgoing transaction (even between your own wallets).
• Use a crypto tax tool or spreadsheet so you’re not staring at thousands of trades in April.
• If you’re doing a lot of DeFi, staking, talk to a licensed tax pro; some activities can shift from “investment” to “business” income.

Many crypto users are confused about which IRS form applies to them. Here’s a quick breakdown 👇

1099-DA → New crypto-specific tax form
Used for reporting crypto sales, transfers, proceeds, and cost basis.

1099-B → Traditional stock broker form
Previously used by some exchanges, but not built for crypto complexity.

1099-K → Payment volume reporting
Reports total transaction volume, NOT actual gains. Historically caused major confusion in crypto.

1099-MISC → Crypto income reporting
Used for staking rewards, referral bonuses, learn-and-earn, and certain airdrops.

📌 Important:
Even if you don’t receive a tax form, crypto transactions may still be taxable and reportable to the IRS.

The IRS is moving toward more standardized crypto reporting with Form 1099-DA.

Form	Primary Purpose	Crypto Usage
1099-DA	Crypto transaction reporting	Future standard
1099-B	Securities broker reporting	Limited/legacy crypto use
1099-K	Payment volume reporting	Historically problematic
1099-MISC	Miscellaneous income	Rewards/staking income

How do you guys get all the tax paper from crypto.com I got my DA1099 only the proceeds… then I tried to get all in koinly and CoinTracker but it didn’t work out for me