Crypto Tax Girl
@CryptoTaxGirl
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We're here for all of your crypto tax needs! We offer crypto reports, tax returns, consultations, and a crypto tax course šŗšø [email protected]
Joined February 2018
Buying crypto isnāt a taxable event. Selling crypto for fiat (e.g., USD) is a taxable event. Trading one coin for another is a taxable event. Using crypto to purchase goods or services is a taxable event.
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About a year ago I bought some BTC and havenāt touched it since, but last week I realized that the amount left on my mortgage and the value of that BTC were the same amount, so I sold it all and paid off my house. Feels good to be debt free! š .
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I recently got hold of a presentation given to special agents in the IRS Criminal Investigation division that discussed investigating taxpayers who hold crypto. I went through all of the 181 horribly formatted slides (attached for reference haha) and here's what I learned.
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The following are not taxable:. - Buying crypto with fiat (e.g BTC for USD).- HODLing crypto.- Transferring coins from one wallet or exchange to another .- Gifting crypto (under 15K per person per year).- Donating crypto to a 501(c)(3) nonprofit organization.
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Crypto tax rules for 2025 are changing again. ICYMI, the biggest changes to ever happen to crypto taxes started applying on Jan 1, 2025, and then a few hours later, they changed again. I've summarized them below (and added in details about the newest change!) š§µ.
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Iām excited to announce my upcoming Crypto Tax Baby fork, expected on April 15! (lol yup - tax day! I couldnāt have planned that if I tried haha!)
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If crypto is your only source of income, your first $12,200 of short-term gains and your first $51,575 of long-term gains are completely tax free. (If youāre married, replace those numbers with $24,400 and $103,150 respectively).
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Please donāt get so caught up in this crypto bull run that you forget about the tax implications. Understanding your cost basis and holding periods, harvesting losses, maximizing long-term holdings, etc. will set you up for an incredible run without an incredible tax bill.
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Soooo I just bought a $STRONG node. Who has tax questions about $STRONG?.
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As many of you have noticed already, the first question on the 2020 tax return is, "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?". I was just reading the IRS guidance, and here's the scoop.
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Marcus Koen Walter. This little cutie joined our family on Tuesday morning weighing in at 7 lbs 7 oz. Iām pretty sure heās perfect and I just canāt get enough of him!
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To clarify, if someone gifts you crypto for Christmas you donāt need to include it as income and they donāt need to pay tax on it (as long as itās under $15K). Merry Christmas everyone!.
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I had one client who thought he owed $300K in taxes on his crypto, but after taking my course realized that he actually only owed $30K. And I had another client that learned that she owed nothing at all! A $35 investment now will likely save you more than that at tax time!.
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š BTC š. My mom first got into BTC in Dec 2017 (oops!) and just texted me to say that she finally broke even. Now I donāt have to hear about how much she lost in BTC anymore š.
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There are so many new crypto tax programs out there now, so Iām thinking of writing a blog post where I review a bunch of them and provide my top pros and cons for each. Would you all be interested in that? If so, let me know which ones you want me to review!.
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Just to clarify, you can deduct unlimited losses per year up to the amount of your gains and then an additional $3,000 on top of that. Anything in excess of the net $3,000 in losses will be rolled forward indefinitely until it runs out.
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The IRS just released updated guidance on cryptocurrency. This is the first time we've received guidance from them on the subject since 2014!.
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Life update: I'm officially in the third trimester and getting pretty excited to meet this baby boy in just a few months!
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Found a BTC ATM trying to sell BTC for $9,237.92 today!
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For 2018, Coinbase, Kraken, and Gemini will be reporting to the IRS, so you may receive a 1099-K. A 1099-K doesnāt have any specifics about your transactions (like a 1099-B does), but it does signal to the IRS that you hold crypto.
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Happy October 15! Aka the last day of the longest tax season ever. What a fun one though! Thanks to the 750+ clients that trusted us to handle their crypto taxes this year.
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With BTC approaching all-time highs, donāt forget about taxes :)
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Two years ago today I wrote this in my journal, and I honestly donāt even remember writing it. Itās crazy how much can change in two years! Iām pretty happy with how things have worked out so far āŗļø
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I just got accepted into @ycombinatorās Startup School and I am PUMPED! I canāt wait to work with some awesome advisors on how to make Crypto Tax Girl better. Yay for learning and improving šš¼.
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Fun fact: Exactly ONE YEAR ago I started this Twitter account to help out my friends and family. I never could have guessed how big it would grow! Thanks to everyone for following along. Your support means everything to me!.
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This is your annual reminder that if you have gains in crypto this year, you can potentially realize up to $116,950 of gains in 2023 tax-free!. (Thread below ā¬ļø).
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You would think that these subpoenas would be served to crypto exchanges, but the IRS plans on serving them to Apple, Google, and Microsoft in order to search through taxpayers' download history to see if they have ever downloaded cryptocurrency applications.
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āHong Kong applies no capital gain tax to crypto investment, making it a huge incentive for investorsā . Hey @IRS take some notes from Hong Kong! šš¼.
Hong Kong is taking an increasingly important role when it comes to blockchain and cryptocurrencies:
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There are four steps to crypto taxes:. 1. Consolidate your data from all exchanges and wallets. 2. Reconcile your transactions so everything balances. 3. Calculate your gains and losses for each taxable event. 4. Report your gain or loss on your tax return. If you need help, lmk!.
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If you did any of these things with crypto in 2017, you likely owe taxes!
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You might have received a 1099-K from Coinbase today. You are most likely looking at the number shown on your 1099-K thinking that it is crazy. Donāt panic. The number shown on the 1099-K doesnāt need to be reported on your return, and it doesnāt reflect your gains or income.
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I doubt youāre trading at a gain right now, but if you had gains earlier in the year PLEASE contact me. Right now is prime time to offset your gains with harvested losses! . There is no reason that anyone should pay any taxes on crypto this year.
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They say Bitcoin will never hit $100,000. They also said a 16 seed would never beat a number 1 seed.
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If you currently hold crypto, there is something that you need to do before the end of the year to ensure compliance!. TLDR: Read our latest blog: "Safe Harbor Instructions", download the Digital Asset Allocation Plan, and sign & date it before 1/1/25.
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Yesterday at the Federal Bar Association Insurance Tax Seminar, Charles Rettig (IRS Commissioner) said:. "We'll have guidance coming out very soon. Could be within the next 30 days, could be less than that.". STAY TUNED!.
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Upgrading your ETH 1.0 to ETH 2.0 isn't a taxable event. The ETH2 will just take on the cost basis and holding period of the original ETH. If you start staking ETH2 though, the staking rewards will be taxed as income.
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Iām in Seoul this week, so I decided to check out South Koreaās largest underground mall (with over 620 stores) that all accept Bitcoin!
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Would anyone be interested in a course that teaches you how to use Cointracking? Like REALLY use Cointracking? How to make sure everything balances, how to find errors and then fix them, entering ICOs, common mistakes, etc?.
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šØCRYPTO TAX TIPšØ. Crypto is a self-reported asset, so you do not need to report every single taxable transaction on Form 8949. You donāt even need to break out every single coin individually.
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Understanding the tax implications of a trade before you make it is powerful. I unfortunately just worked with a client who could have saved over $200,000 by qualifying for long-term treatment if he had waited just three more days to sell one of his altcoins.
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I recently reached out to the IRS regarding FBAR reporting requirements for crypto. I just received a response and was told that if the aggregate of all of your coins on foreign exchanges was greater than $10,000 at any point in the year then you are required to file an FBAR.
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Just spent the day harvesting my losses for 2018 and cut my tax bill in half. I recommend you do the same!.
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I tweeted just a few minutes too soon :). Per the recent announcement from Sec Mnuchin, individuals can defer up to $1 million in tax payments for 90 days without incurring interest or penalties as long as you file by July 15. New tax deadline for 2019 tax returns: July 15.
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I've talked to a few clients lately who have no other income besides crypto, and if this applies to you, then as long as your taxable income from long-term gains is under $38,600 (single) or $77,200 (married) then you will not owe any tax and don't need to file a tax return.
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My new crypto tax course is almost done, and I'm sooo excited for you guys to get your hands on it. There are a ton of many amazing tidbits in it that will make the daunting task of calculating your crypto taxes a breeze. Like for reals, it's awesome.
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In a recent letter to the IRS, the AICPA (American Institute of Certified Public Accountants) asked if a āde minimisā rule could be implemented for crypto, which would exclude all small crypto transactions with gains less than $200 from capital gain taxation.
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If you are going to invest in crypto in your IRA, you need to set up an LLC to hold your coins because directly transferring assets between you and your IRA is a prohibited transaction per IRS rules.
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One year ago I started this Twitter account, and itās crazy how much has changed in a year. Thank you so much for all of your support and following along ā¤ļø This is my dream career and you all make it possible!.
This is my genesis tweet.
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Here are the 2018 ordinary tax rates. If you hold your appreciated coins for less than a year before trading/selling/using them, you will be taxed at these rates
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JustĀ a reminder to make sure you have both yourĀ digital asset allocationĀ planĀ and yourĀ wallet/exchange screenshotsĀ done before tonight!. Have a happy new year!.
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Iāve been a little quiet here lately because Iāve been so busy, but just a reminder that the 2019 extended deadline is next week (10/15). Also, remember my baby that was born right before tax day? Heās now six months! I canāt believe it!
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To enter your crypto gains & losses into TurboTax, go to the "Wages & Income" section, click on "Investment Income", then "Cryptocurrency", then "Yes", then "I'll type it in myself", then "Continue". It'll take you to this page:
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I've had quite a few clients receive letters from the IRS these past two weeks regarding cryptocurrency compliance. It's a standard letter that is three pages long and basically says that the IRS has record of you owning crypto, so you better be compliant.
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You can use capital losses from crypto to offset capital gains from crypto, stocks, real estate, gold, etc. Youāre not limited to using your crypto loses to offset just your crypto gains.
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This week lawmakers sent a letter to the IRS strongly urging them to issue updated cryptocurrency tax law by Oct 17. They also pointed out that the IRS should make clarity a priority over enforcement of outdated guidance. I guess weāll see what happens.
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Three years ago today I started Crypto Tax Girl!. Thanks for following along and trusting me with all of your crypto tax questions. It really is a dream job, and I have you guys to thank :).
This is my genesis tweet.
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Just helped my 80-year old client calculate his crypto gains and losses and file his taxes. Youāre never too old to invest in crypto!.
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I pray that none of you reading this get audited, but after going through those slides, it wouldn't surprise me if some of you do. If you reported everything correctly already though, you have nothing to worry about. If you haven't, let me help you :).
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This week we added a new little guy to our family! Meet Chase Kennedy Walter š¤ 7 lbs 6 oz and 19 3/4 inches of perfection!
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Other important things to keep track of for tax purposes:. - Forks.- Airdrops.- Mining.- Gifts you give.- Gifts you receive.- ICOs .- Crypto received as payment .- Crypto sent as payment .- Hacked/stolen/lost coins .- Tips receieved.- Crypto donations to charity.
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Iāve gotten so many DMs today asking me how to enter crypto gains and losses into TurboTax. I canāt respond to all of you right now, so here it is. Just follow these steps!
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If you're borrowing against your crypto as use the loan to buy more crypto (or other investments), the interest paid can be deducted as investment interest expense, up to the amount of your investment income. If the loan is used for personal expenses, interest isn't deductible.
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If you want to calculate your crypto gains and losses, but arenāt sure where to start, make sure you check out my new free tutorial, where I reveal my main tips and tricks to help you consolidate and reconcile your transactions!.
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Also, just FYI, mining income is subject to self-employment tax. If you have substantial mining income, you might want to look into converting your mining business into a S-Corp to reduce your total tax bill!.
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The IRS plans to use interviews, open-source searches, electronic surveillance, social media searches, and Grand Jury subpoenas given to a variety of companies.
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Usually coin to coin trades are taxable events, but there is an exception! If you buy BTC and then turn around and buy an altcoin immediately after, then there are no tax implications. There are only tax implications if you buy altcoins with appreciated (or depreciated) coins :).
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FEES!! I get a ton of questions about fees and I know that they can add up (especially if you are using ETH a lot), so letās walk through how they impact your tax calculationsā¦. Stay tuned because this can end up saving you a lot of money!.
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Answer NO if you only: . - Bought crypto.- Held crypto.- Transferred crypto between wallets you control.
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The IRS has updated the crypto tax question on the draft 2022 tax form
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The house as officially passed the stimulus bill, so what does that mean for you?. As you probably already know, the checks will be $1,200 per individual and $500 per child under 16.
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Another slide mentions that the agents should be sure not to notify the taxpayer about the obtainment of information regarding their use of bitcoin, because such notification could be detrimental to the investigation.
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I feel kinda awk tweeting this, but so many people have asked if I have a tip jar, so just wanted to let ya know that I do! Hereās my BTC address: . 35eeBf4TSgvPj6t8jkoeippALjh1Z1K8Z6. Thanks a ton for all of your support! I love doing this so much it barely feels like a job ā¤ļø
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I love when people DM me their important tax questions
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Just FYI, the value of your holdings on 12/31 is completely irrelevant for tax purposes. You are not taxed until you REALIZE your gains.
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My biggest tax tip is to keep really good records. Download your transaction history regularly, document where all your crypto went to/come from, and make lots of notes!.
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Recently the IRS released a draft of the 2019 Form 1040, Schedule 1, and at the top of the page theyāve added the question: āAt any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in virtual currency?ā
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The IRS also plans to review Facebook, Twitter, and other social media platforms to find publicly available BTC and ETH addresses.
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If you have lost coins due to hacking, sketchy ICOs, forgotten passwords, inaccessible wallets, stolen coins, etc., you might be able to deduct these as losses. These various types of losses are all treated differently though, so consult with a tax professional first!.
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Second distributions are coming from Celsius and here's the TDLR:. - The distributions will be made in BTC (instead of BTC, ETH, and Stock).- The distribution will be 2.53% of your claim.- Distributions will be made based on an effective BTC price of $95,836.23. Example below ā¬ļø.
Celsius will soon begin a second distribution of $127 million made available from the Litigation Recovery Account to eligible creditors (Classes 2, 5, 7, 8, and 9). Distributions will be made in BTC or USD, based on eligibility. For more details, please refer to this notice:.
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When you file your 2021 tax return next year, you'll notice that the crypto question is still the first question on the tax return. Thankfully this year they changed the wording a bit to only include taxable events (receive, sell, exchange, or dispose of crypto).
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Today BTC is still worth 54% more than it was 12 months ago.
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My sister gave birth this week to cutest little girl! Iām on babysitting duty right now, so sheās helping me with tax reports ;) best intern ever!
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Tax tip: Rewards received from a crypto debit/credit card are not taxable! . An example of this would be the CRO earned from using the card.
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Excited to announce that another baby boy will be joining our family this summer! #20weeks. (Sorry if I havenāt been good about answering your emails the last few monthsā¦ now you know why š)
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Hereās a sneak peek of my new crypto tax course coming out next week! . Weāll cover everything you could possibly do with crypto and go over all of the new tax guidance. If thereās a specific topic you want me to cover, this is the last call. Comment below :)
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Iām back! If you emailed or messaged me while I was gone, hang tight! Iāll get back to you as soon as I can :). And here are some photo highlights from Africa š§” (also, everyone needs to book a trip to Morocco right now. It was amazing!)
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There is a ton of other information in there about crypto in general, tracing transactions via the blockchain, limitations of the blockchain, etc. but what you need to know is that the IRS is working HARD to identify criminal tax cases involving cryptocurrency.
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Tax season has officially begun now that e-filing is open! Don't forget to answer the new question added to 2019 tax returns that asks:. āAt any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?ā
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So in short, if you're going to be reporting crypto elsewhere on your tax return (Form 8949, Schedule C, wages, other income, etc.), then answer "yes". If you don't have any taxable events to report, then answer "no". Full excerpt from the IRS below (
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According to a recent article by @Forbes, you don't need to report crypto holdings on your FBAR:. "the Treasury Financial Crimes Enforcement Network has recently decreed that cryptocurrency accounts held by exchanges located outside the country donāt have to be disclosed.".
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Wow Iāve only been tweeting for three weeks and I already have over 3,000 followers. Just wanna say thanks to everyone for hanging out!.
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Ohio is officially the first state to accept crypto as payment for taxes!. Unfortunately, using crypto to pay taxes is also a taxable event.
Beginning this week, Ohio businesses will be able to register to pay taxes with bitcoin
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To all the people that have funds stuck on FTX:. Go into your account right now and get a CSV download of all the transactions from the account and take screenshots of your account balances as well as your account name. This is will help with any legal proceedings in the future.
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If the developers of a coin create a token swap in which one coin is swapped for another and the original coin is abandoned (eg. ANS for NEO), that is not a taxable event. The new coin would just take on the cost basis and holding period of the original coin.
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Today is the first official day of tax season. Send all your good vibes my way!.
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E.g., If you had $15,000 in capital gains and $20,000 in capital losses it would look like this. Use the $20,000 to completely offset the gains. Then deduct $3,000 as losses on your return. The remaining $2,000 in losses would roll forward to next year to offset future gains.
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