4 Simple Steps

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.