4 Simple Steps

This checklist for crypto taxes will take the guesswork out of the process of filing to get you out of uncertainty. 

  • Step illustration
    Track Every Transaction
  • Step illustration
    Calculate Gains and Losses
  • Step illustration
    File the Right Forms
  • Step illustration
    Secure Proof for the Future

 

1. Get all of your date organized

  • Compile Your Transactions:
    Collect records from exchanges, wallets, and DeFi platforms.
  • Monitor Every key Detail:
    For each transaction, note the date, type (buy/sell/trade), token amount, and USD value at the time.

2.Find and organize Taxable Events into Categories

  • Categorize Your Transactions:
    Separate taxable events (trades, sales, staking rewards) from non-taxable ones (transfers between wallets).
  • Don’t Forget Any Additional Income:
    Add mining, staking, or airdrop earnings to your records.

3. Measure Your Losses As Well As Your Gains

  • Make Sure To Use The Appropriate Accounting Method:
    Decide on FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) and apply it consistently.
  • You Must Remember To Adjust For Fees:
    Deduct transaction fees from gains to avoid overpaying taxes.

4. Do Not Select The Wrong Tax Froms

  • Capital Gains/Losses:
    Report these on IRS Form 8949 and Schedule D (or equivalent in your country).
  • Income:
    Include staking or mining rewards on Schedule 1 (or local equivalent).

5. Do Not Hesitate To Hire A Professional Or Use Software

  • Software Tools:
    Choose crypto-specific tax software to automate calculations and form preparation.
  • Tax Experts:
    If transactions are complex, consult a crypto-savvy CPA for peace of mind.

6. Do Not Miss Deadlines And Always Be Ready For Audits

  • Know Deadlines:
    Be aware of your local tax filing dates and extensions.

Store Your Records Securely:
Keep transaction histories, wallet addresses, and tax filings for at least 5–7 years. 

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