2025 Crypto Basis Rules: How to Minimize Capital Gains
The IRS has drastically changed how crypto cost basis is calculated for 2025 and forward. Since basis is now calculated on a wallet-by-wallet approach, taxpayers will nee...
Crypto Trading Tax
Major Crypto Cost Basis Changes in 2025
The IRS is no longer allowing taxpayers to use the “universal” wallet approach starting in 2025. This is the method basically every crypto tax software has used historica...
IRS Says Decline in Crypto Value Is Not a Tax Deduction
The IRS has stated that a decline in the value of a cryptocurrency or NFT does not qualify as a loss under IRC section 165. Actually disposing of the asset will be requir...
IRS: Appraisals Required to Deduct Crypto Donations
Qualified appraisals are required for any donation of cryptocurrency exceeding $5,000. The IRS also noted that if a taxpayer failed to obtain an appraisal, they would not...
Casualty and Theft Losses From Crypto Exchange Failures
There is no clear consensus on whether or not crypto investors are able to take casualty or theft losses for funds held on defunct crypto exchanges. Many experts say it i...
Bear Market and Crypto Winter Opportunities: Tax-Loss Harvesting
Most people aren’t making a ton of money in crypto right now. The market is down substantially and a lot of people – especially those who got involved in crypto more rece...
Are Wrapping and Unwrapping Crypto Tokens Taxable Events?
Wrapping Bitcoin and other tokens allows them to be used on different networks. Is the act of wrapping and unwrapping these tokens taxable? Some experts say yes and some ...
FIFO, HIFO, or LIFO: What Is the Best Accounting Method for Your Crypto Taxes?
The best crypto accounting method will depend on the type of investor. It will also vary based on overall market conditions. FIFO can be helpful for long-term investors b...
Cashing Out on Your Crypto Profits to Avoid Tax Catastrophes
Taking profits and setting aside a percentage of that income is one of the most important things you can do as part of your crypto tax planning. It’s simple (and often ig...
Are Crypto Credit and Debit Card Rewards Taxable?
In general, rewards received from crypto credit and debit cards are not taxable. They are considered a reduction in purchase price, not income. However, promotional amoun...
Is Paying With a Crypto Debit Card or Crypto Credit Card Taxable?
Crypto Tax CPA explains the benefits and risks of using crypto cards.
Do I Qualify for Crypto Trader Tax Status?
It is very unlikely that crypto investors will qualify for “Trader Tax Status” (TTS) on their tax returns, although it is not impossible. Day Trading and Professional Tra...
Does Crypto Qualify for 1031 Exchanges?
No, cryptocurrencies are not considered “like-kind” property and do not qualify for Section 1031 exchanges. Intangible Assets Ineligible for 1031s Post-TJCA If you’ve rea...
How to Track Crypto Activity
The majority of cryptocurrency activity will result in some sort of reportable transaction. This can cause difficulties both if you’re trading on a larger centralized exc...
Is Crypto Subject to the Wash Sale Rule?
Selling vs. “Selling” For traditional investments there is something called the “Wash Sale Rule”. It states that if you sell a stock at a loss but then buy an identical (...
Holding Period: Are Crypto Sales Short-Term or Long-Term Capital Gains?
As we’ve noted before, each time you trade one crypto token for another a capital gain or loss is created. And you need to report that income on your tax return – regardl...
How Are Crypto Trades Taxed?
In crypto circles, one of the most common sentiments is that crypto trading and profits are not taxable until you convert them back into a fiat currency. “Yeah, but you d...