r/CryptoTax

Not sure what other details might be helpful to include here, but it's basically the situation I laid out in the title.

This is kind of the scenario:

• I onramped with a CEX
• Made gains trading on a DEX
• Made losses on a lending platform
• Made losses on a DEX
• Offramped with well less than the onramp amount, after all of the losses

Ultimately, I marked "No" on the digital assets question and did not file the transactions.

All of this happened in the same tax year, so no net gains. In fact, losses.

Few questions:

• How bad is it, what I did?
• Do I need a tax lawyer to clean this mess up?
• Could I fix this with a CPA?
• Could I fix this just on my own?
• What happens if this is not fixed by the amendment filing expiration deadline?

Edit:

- As for trying to fix this in itself...how do you even report the losses from getting liquidated on a lending platform, where the "sales" are done for you by the smart contract? And how do you even begin to piece together the cost basis and losses story if it's spread across different wallets on different chains, potentially with lost wallets?

Thank you in advance.

I was going through CoinDCX global futures equities investing. I want to know how are global futures in crypto taxed? In CoinDCX official help section it states that it is accounted in Other Incomes section and taxed at my income slab. But I did some research on my own and IT provisions are not clear for global futures in equities. Any CA to help me out before I invest lumpsum

1. How are the gains taxed (Say I invest 5 lakhs and make a profit of 1 Crore, how will that be taxed)
2. Is the USDC/USDT gains from intra-transactions comes under VDA section
3. Are the cost like fees,gst and funding tax deductable
4. Do I need to file ITR2 or ITR3
5. Can I still get IT notice even after compliance.

PS : I have salary income and CG income only

Filling out the 1 line summary of all transactions on From 8949, google says the irs checking engine wants to see "proceeds" match the 1099-DA issued by the exchange. So use that figure for "proceeds" column.

One hopes it will know to add the short term and long term side and only check the sum total of both, since the individual sums are not going to be accurate if you did any transfers.

Next, use your actual cost basis and actual P/L figures.

Then, in column (f) use "B" for "basis correction", and enter the correction amount in column (g).

Where "correction amount" in (g) is the difference between your actual proceeds vs Kraken's 1099 reported proceeds.

So if your proceeds are $12k and your 1099 only shows $10k, your column (g) adjustment is $2k.

Just so long as P/L = (Proceeds - Basis) +/- adjustment (g).

This however opens up another question. E.g. with HR Block offices you must enter "M" in column (f) in order to unlock the "attachment upload" option for multi-page 8949 uploads. My agent couldn't get it to upload without entering that first (a couple of years ago anyway). So if you use "B" in column (g), I wonder if it will still prompt for an upload of full transaction list.

Is this the correct way to report on the 8949 Summary line?

It is done once for each exchange on the long term and short term transactions summary page.

And is there some way to explain this adjustment in (g) on the tax return so they understand what they are looking at? Thanks!

Coin tracking default labels all transactions as "proceeds not reported, basis not reported" or unreported transactions for Tax Year 2025 (currently filing with extension).

You need the correct type of transaction category to fill out form 8949. You have to manually add the correct "transaction type/category" by adding it to the "group" setting of each specific transaction. They detail this in "1099-DA Flagging and Form 8949 Section Assignment"

e.g.: "Short term reported with cost basis", "Long term reported without cost basis", etc..

Accordingly using the proper section "A" through "J" Form 8949 checkbox assignment for each.

However If you have many transactions doing this manually it's not possible. So if you try to categorize it as "transaction has been reported without basis" now you are forced to designate it as short term or long term transaction.

This is not possible to do without going through the entire list of trades which is not feasible.

This means it basically doesn't work and you can't get a proper 8949 printout with the proper check box assignment.

It's important to have this so when the irs reviews it it aligns with what they've received from the exchanges. To my understanding for 2025 most exchanges have only sent net sale/proceeds.

The problem is furthermore compounded by what I've heard that if you report it as "unreported" and it was reported, they may add it to your totals (doubling your transaction count), creating confusion. So you need to get the designation correct and to match what they've sent on their 1099-DA.

Does anyone have any suggestions or solution to this? Thanks.

I’ve been gambling on Stake throughout the year and ended up around $50k ahead overall, but it wasn’t from one huge win. It was a lot of wins and losses across sportsbook bets and casino games over a bunch of different sessions.

I deposited crypto at different points, played with it, withdrew some when I was up, then eventually sold the withdrawn crypto through an exchange and moved the cash to my bank.

What I’m struggling with is how detailed the reporting is supposed to get.

My exchange can obviously see the crypto coming back from Stake and being sold, but it has no context for all the gambling activity that happened before that. On the Stake side, there are hundreds of individual bets, so I’m not sure whether I’m expected to account for every wager separately or if there’s a reasonable way to summarize wins and losses by session.

I’m also confused about what happens when the crypto leaves Stake. If I withdraw $10k worth of crypto after a winning stretch and sell it shortly after, am I treating the value at withdrawal as the new basis and only reporting the price movement after that as a crypto gain or loss?

For anyone who has dealt with this before, what records did you actually keep?

Did you export the full betting history, just deposits and withdrawals, or create your own summary of sessions and net results?

Also wondering whether this is something a regular CPA can usually handle or if it’s worth finding someone who specifically deals with both gambling and crypto.

I’m trying to report everything properly, I just don’t want to accidentally treat all the exchange proceeds as crypto gains when a lot of it came from gambling winnings.

I've been working with a tax firm recommended on Summ and other crypto tax software websites. For over several months.

Unfortunately I am not confident they will be able to meet the October 15 deadline as originally estimated.

What are my options? Should I file with what I have and then hire someone else to fix things? I have worked with crypto tax firms before, so this experience has been shocking to me.

I'm a UK resident. Over the last twelve months ish I funded an arbitrage bot and it generated a wallet, ran high-frequency trades automatically, and made profits well over the £3,000 Capital Gains allowance. I withdrew part of the profits to Binance.

With the Oct 5th Self Assessment registration deadline here, I have a problem: the bot doesn't give you a CSV of the thousands of micro-trades. I only have:

1. My initial deposit amount.

2. The public wallet address the bot created.

3. Full records of the withdrawals back to Binance.

My questions:

1. Can I just plug the bot's public wallet address directly into UK tax tools like Koinly or Recap? Do they handle high-frequency arbitrage routing correctly without throwing missing-cost-basis errors?

2. Can I just report a "best estimate" to HMRC on the SA108?

3. Has anyone had HMRC challenge whether automated bot arbitrage is trading income instead of capital gains?

Any advice from people who have been through this would be massively appreciated.