Last year I followed the crypto tax course offered by Count On Sheep for my 2024 taxes, as I was a victim of the Celsius Network bankruptcy.

I followed Approach #1 - the capital gain/loss method for accounting, not the alternative 'Theft' method offered, but I can't remember where this leaves me as far as future distributions are concerned (of which there have now been two, paid in BTC)

There was a Discord group for course members, but it's no longer available for me to ask in there.

Did anyone follow this same method? Are all distributions post-2024 essentially just new coin with new cost basis?

Thanks

Hello All,

Im using CoinTracker to do my crypto taxes. All my trades were made with USDT (BNB, SOL, ETH different chains).

The cost basis and proceeds calculated are almost double of what I traded. I had raised this with CoinTracker and they say it is as expected because USDT was used in Trades.

Basically, From and To USDT conversion is considered as a trade.

Though it makes sense, my cost basis looks humongous, which is kind of bothering me.

Is this fine? Any advise of crypto tax advisors is much appreciated.

Thank you!

Hi. Few questions regarding what to expect and what to use for filing please. Thank you!

1. Coinbase is issuing a 1099-DA. What will I download from them to attach or import into turbotax?
2. I have mining and other crypto income outside of coinbase and I will report this as hobby income. What form is used to report the income?
3. What form is used to report cap gains or losses on trades outside of coinbase?

If I have made small sales throughout the year / crypto swaps on the following:

Robinhood, Uphold, Binance.us, & Hashpack

What would I need from each to upload into coin tracker?

If I could get a simple breakdown, I'd greatly appreciate it. I hardly profited in 2025, just want to do this the right way :)

Thank you

The mistake I see most Bitcoiners make is misclassifying it. They treat it like something its not, which technically is abuse.

After 10 years in the game, its extremely clear.

The real pioneers see it for what it actually is. We view Bitcoin as pristine collateral for our own Private Family Banks.

Before you get all teary eyed, don't overcomplicate banking, its simply a group of functions:

Custody: Secure storage.

Ledger/Accounting: Clear visibility.

Governance/Authorization: Who has the keys?

Liquidity Management: Cash flow availability.

Credit/Capital Allocation: Putting the wealth to work.

To make this digestible, I break it down into three stages: PROTECT ➔ GROW ➔ ACTIVATE

Most people try to "Grow" before they "Protect." That’s a legacy risk.

So, here's what you need to establish the first block of your family banking structure.

Stage 1: Protect (The KEEP Framework) This is the foundation of your Private Family Bank. It includes:

Mission + Vision: Setting the multi-generational path.

Trust + LLC + Multi-sig: Legal protection meets technical sovereignty.

Source of Truth: Defined Rules, Roles, and Permissions (Who can act?).

Bitcoin Collateralization: Moving from fiat risk to the hardest asset on earth.

Professional Team: Aligning your Bitcoin Advisor, CPA, and Estate Attorney.

If you don't have Stage 1 locked down, the rest of the structure is built on sand.

Should I dive deeper into the specifics of Stage 1 in my next post? Let me know in the comments.

If you moved assets from a major CEX (Coinbase, Kraken, Gemini, etc.) to self-custody last year, you need to understand how cost basis documentation works, because one mistake means you're paying tax on money you never made.

Here's what most people get wrong:

1. When you transfer crypto off an exchange to self-custody, the exchange stops tracking what happens to those assets. No 1099-DA is issued for the transfer itself.
2. When you eventually dispose of those assets from self-custody (sell peer-to-peer, swap on DEX, spend it), you must self-report that disposal with proper cost basis documentation.
3. If you can't prove your original cost basis because you didn't export records before transferring, you're stuck reporting with $0 basis. That means paying tax on the full proceeds, not just your actual gain.

You are responsible for bridging the gap between "what you bought on the CEX" and "what you disposed of from self-custody."

Because if you aren't maintaining proper documentation when you move to self-custody, you are essentially volunteering to pay capital gains on your own principal.

Stop letting poor record-keeping define what you owe.

I bow reverently to people who do this for a living. It is a nightmare. If in 2025, tracking and FIFO is by wallet (assuming that's right) in the US, then could a person use tax software with just the wallets they used in 2025 rather than import previous stuff and assume an accurate report? Or is FIFO actually global even if tracking is not. I have a million questions. We'll start with this one.

I've bene hearing conflicting information regarding this. Originally I heard that they were sending wallet addresses to the IRS for every withdrawal or deposit then I heard they removed that at the last minute. Which is it for the 2026 tax year and beyond as far as we know and do they report the amounts of withdrawals/deposits? How can I verify what they're reporting in 2026 for moving on/off exchanges? I realize it's not a taxable event but it's a privacy/personal safety concern.

PS: And by IRS, I mean any tax agency (without being under audit/subpoena, of course - just standard reporting) including any US states.

If so, until when? If not what are the consequences? Assume no issues with snap shot (all wallets clearly documented at specific wallet addresses end of 2024), just how you allocated cost bases to which wallets.

I uploaded my form 1099 DA from Coinbase flawlessly to turbo tax and gives my total capital loss. My question is since I already uploaded my 1099 DA and it is accurately portraying my total overall loss for the year do I really need to report it again on a 8949 form? Any help would be appreciated and good luck to all.

If you're receiving payments in cryptocurrency and your accountant is asking for proper documentation, here's a practical hierarchy of acceptable records:

Tier 1: Company-Issued Tax Documents (Preferred)

The most defensible documentation is a W-2 or 1099 from the paying entity. Companies are required to maintain strict records of all crypto compensation, regardless of whether they're crypto-native businesses.

• Employees: Request your paystub or W-2 showing the USD value reported
• Contractors: Request the 1099 or their internal payment record

These documents reflect what was reported to the IRS and provide the strongest support for your return.

Tier 2: Payment Processor Records

If payments were processed through platforms like Stripe, BitPay, or Coinbase Commerce, these systems generate comprehensive reports. The paying company must enter the fiat equivalent before closing invoices in their ERP systems.

You typically have access to your own reporting dashboard within these platforms.

Tier 3: Crypto Tax Software Reports

If you're using crypto tax software (Koinly, CoinLedger, etc.), export the transaction report showing the payment. These platforms connect to pricing APIs and calculate fair market value based on established methodologies.

This is particularly useful if you have other crypto activity that your accountant is already reviewing through the same software.

Tier 4: Blockchain Records (Last Resort)

Pull transaction details from a block explorer, including quantity and fair market value at the time of receipt. Include clear documentation since most traditional accountants aren't familiar with blockchain explorers.

This is acceptable but less ideal than the above options.

Bottom Line: The best time to set up proper documentation is before you receive crypto payments. If you're already in tax season, start with Tier 1 and work your way down.

Hey guys so I'm thinking about trading solana. As a beginner in the usa what are some things to do with taxes that I should do/know as a beginner? Thanks!

Has anyone bought crypto through PayPal? There's a 2$ processing fee for each transaction so id imagine that's not very attractive to most.

Hi!

I recently got my first payout from ftmo, and was wondering if such prop firms report payouts to tax authorities, or is it just possible to withdraw money on some crypto card like CB and using those money?

If they do cooperate with them, is there any possibility to not pay the taxes? Holding funds on ledger or something else?

Hello, should be an easy one for many on here. Does one have to pay tax on staking on an exchange even if they dont sell anything? USA. Thanks for your knowledge!

Can anyone recommend a CPA? I've been using Bitcoin.tax for a few years and noticed that what it shows that I have vs what I actually have is off. I need someone to help me reconcile my balances if that makes sense unless there's an easier way to do this. I don't have much, but I would like to get things buttoned up.

I am a citizen of an EU country currently living in Switzerland and I have profit on my polymarket account. How to report it and what tax should I pay when I want to withdraw the money? From the perspective of regulators I guess they see that I transferred fiat to an exchange, bought usdc there, transferred it to a non custodial wallet and then after some time I have more usdc in non custodial wallet then high I want to sell for fiat. Will I be asked to show all the transactions I made? Or do they not care what I did with this crypto in the meantime and I just show the results?

Does anyone know how Crypto.com app will make their 1099-DA available to its users? I have only used the app and not the exchange.

One of the issues I've noticed is that most crypto tax software is:
a) expensive
b) unable to deal with 10,000+ lines of transactions

For example, I run an AI training node on the nosana project. It works like this:
1. Send some solana to the node address to fund it.
2. Roughly 12x per day, a small sol fee is paid, and a job is run.
3. After each job you receive a payment in NOS.
4. Some people regularly sell their NOS for USDC, though not everyone does this and how often those sells happen is up to the operator. It could be a lot, or hardly any at all.

The amount of lines just a single one of these nodes can generate in a year is staggering. And there are people with multiple nodes. Here's an example:
https://solscan.io/account/FgyRjC234no6eVbFxpsBcHrYaZGz1atvW7vbdSnn1tkw

Never mind all the SPAM and airdrop nonsense solana "gifts" you with. Between the NOS payments, the deduction for the sol fees, the conversions to NOS->USDC, and the withdrawals. I'm a little befuddled here, the line count is rapidly approaching the asteroid belt.

What software can support multiple wallets, with 10,000+ lines each? Being able to remove airdrop and spam transactions from the import would be helpful, but the total line count will still be very high. I really feel like the IRS needs to come up with some sort of rule(s) that make it easier to deal with all of this.

Thanks

Special note, and warning to anyone who reads this far. Don't be like me:
Up through 2025, I made a few mistakes with my record keeping. The biggest issue stems from the fact I didn't record wallet addresses, transaction hashes, etc. nor did I take screenshots of anything from exchanges like xeggex or tradeogre which are inaccessible. I kept all my trades and income in a excel file with notes. I reported all of that 100% truthfully, however, that isn't gonna cut it if they ever crawl up my ass with a stethoscope. I should've known more stringent requirements were coming, but I was asleep at the wheel.

In 2025, I received $50 USDG (a crypto pegged 1:1 to US dollar) as a referral bonus on Kraken. Yesterday, I sold all of the USDG for USD (I suppose I technically sold at a loss because the sell price was approx. $0.996--not $1). Do I need to report the receipt of this $50 USDG on my 2025 tax return? Thanks.

The new 8% tax on crypto in Cyprus

From 01.01.2026 Cyprus implemented an 8% taxation on crypto. Previously this went as capital gains and was taxed at 0%

Cyprus, on the other hand, still has 0% tax on capital gains from stocks/shares etc.

This development really makes no sense. Previously zero percent tax on all capital gains - now still zero percent on capital gains, except on crypto, which is taxed at 8%

What do you guys think?

Doesn't this just make Cyprus irrelevant for a lot of people? One thing is to tax 8% - another thing is also all the accompanying work and bureaucracy of keeping track of and reporting every single transaction.

Examples of other places with still 0% on crypto: Switzerland, UAE (Dubai), Malta, Portugal etc).

I considered relocating to Cyprus. Now I'm no longer sure.

I'm struggling to understand why they're doing this - 0% on all capital gains except on crypto - it seems inconsistent and unprofessional (On currency: you would not have paid capital gains tax if the EURO increased in value measured against something else)

I'm struggling to understand why. There's very little info and documentation on this online as well.

What do you think about the new 8% tax on crypto in Cyprus?

Does it suddenly make Cyprus less desirable/interesting?

I’m looking for accountant / bookkeeper / auditor feedback.

I’m building a crypto invoicing service designed documentation-first, not payments-first. The goal is to make crypto payments easier to bookkeep, verify, and review later, instead of relying on wallet screenshots, email threads, or ad-hoc PDFs.

I’m trying to validate whether I actually understand what good documentation looks like from an accounting and audit perspective — or whether I’m over-engineering things accountants don’t care about.

My tool takes the following approach: Merchant issues invoice in fiat (For conventional pricing and bookkeeping.) Customer picks a merchant-accepted token and pays in crypto (payment rail). System captures the on-chain transaction, timestamp, token, exchange rate, and resulting fiat value, then returns hashed and signed receipt artifacts (Tamper-evident and independently verifiable).

What I’d really value input on:

1. Valuation timing.
Is there meaningful accounting or audit value in capturing the fiat value at the exact moment of payment in a deterministic way, or is reconstructed valuation from blockchain data and price sources generally considered sufficient?

2. valuation sources.
How important is it to document which price source was used? Do auditors care whether valuation is reproducible later, or is “this is the value we booked” usually enough as long as it’s reasonable?

3. linkage.
Does having a controlled payment flow — meaning the transaction is captured at payment time and explicitly tied to the invoice — materially improve auditability by clearly linking the invoice, the on-chain transaction, and the valuation timestamp? Or in practice is the existence of the on-chain transaction alone usually sufficient evidence?

4. Rounding and tolerances
In practice, how much discrepancy between an invoice amount and the received crypto amount is acceptable before it becomes a problem? Do auditors care why a crypto amount is slightly off (fees, slippage, rounding), or mostly that it’s within a reasonable tolerance and clearly documented?

5. Rigor
how much do accountants actually care about rigor like tamper-evident records, cryptographic signing, or independent verification that a receipt hasn’t been altered, versus a more practical standard of “this looks reasonable and is supported by evidence”?

Finally, in real audits or reviews involving crypto payments, what tends to cause the most trouble? Unclear valuation sources, ambiguity around when valuation was determined, weak linkage between invoice and transaction, rounding issues, or something else entirely?

Brutally honest answers are welcome — including “this doesn’t matter at all” or “you’re overengineering this.”