Insights on Cryptocurrency

Yes. The IRS treats cryptocurrency as property for tax purposes. This means all sales, trades, conversions, and income earned through crypto (including mining and staking) must be reported on your tax return. 

Maybe. Even if you didn’t sell, activities like staking, mining, receiving crypto as payment, or certain airdrops may still create a tax obligation. Let’s review your activity to be sure. 

 You should keep detailed records for each transaction, including:

• The date and time of acquisition and disposal
• The fair market value in USD at the time of each transaction
• The amount and type of cryptocurrency involve
• The purpose of the transaction (e.g., sale, purchase, trade, income)
• Any transaction fees incurred

If your crypto records are incomplete or missing, don’t panic. We can still help. There are IRS-accepted methods for reconstructing cost basis using exchange history, blockchain data, or reasonable estimates. It’s best to act proactively and document everything you can. We’ll work with you to make the strongest case possible based on the available information. 

Non-Fungible Tokens (NFTs) are generally treated as property. If you sell or trade an NFT, it may trigger a capital gain or loss. In some cases, especially if you're a creator, proceeds from the sale may be taxed as ordinary income. 

Absolutely. We can help identify realized losses and properly report them to offset capital gains, which can reduce your overall tax liability. Unused losses may also be carried forward to future tax years. 

No. Transfers between your own wallets or accounts are not taxable events. However, it’s important to keep clear records of these movements to avoid confusion during tax preparation.

 Receiving crypto as payment is considered income and is taxed at the fair market value of the crypto at the time of receipt. This applies to freelancers, contractors, and business owners alike.

Yes. Crypto held on non-U.S. exchanges may trigger additional reporting requirements, such as FBAR or FATCA disclosures, depending on account thresholds. We can help determine if these apply to you.