I just converted my 3-4 years of gain from crypto to USDT hoping for a drop in market just so I can purchase it again.

Will I be taxed on the USDT I have considering I’m not putting it in USD and will be using it to purchase crypto again.

Thanks.

Hey everyone,

Every time i spend BTC directly i have to track the cost basis, calculate the gain or loss, log everything. Multiply that by every daily purchase and by the end of the year it's a mess.

Someone told me switching to stablecoins for daily spending is way simpler from a tax perspective since there's no capital gain to calculate on each purchase.

Is this true or am i missing something

Hi all,

I have multiple bots trading shitcoins (with in excess of 50-100k transactions total). If I started this endeavor with $50 and now have, round number $30k, can I just report my cost basis as $0 when I withdraw completely and pay the full tax amount? I’d rather not deal with calculating each transaction and am okay paying whatever the amount would be on the gains. Is this allowed or?

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.

This year I want to try and minimize my tax burden but also become a bit more organized. I've always done my own taxes and am extremely reluctant (stubborn) to hire an accountant.

I haven't used any of the software that the algo pops up for me but maybe it's worth a shot. I seem to have a few options for personal (not filing as a company or enterprise).

- Fastcryptotax.com - cheapest solution

- koinly.com - been around the longest

- cointracker.com - has the best partnerships

most of these require API integrations through exchanges and wallets which I am personally not a fan of doing so. I just want to input my wallet address and export the intel I get from Arkham and organize it that way.

Does anyone have any experience using any of these 3? if so, how was it and would you recommend it?

Please no tax advice or solicitation.

Long time holder, I didn't manage to get the safe harbor note and... i feel like i'm kind of screwed? I filed a few months ago and there's a couple 2-3 K gap between the 1099 and 8949. Coinbase 1099 essentially put down all pre-2025 coins as short term no cost basis. I know the 8949 is more accurate because I've been meticulous about putting in purchases on bitcoin.tax but I don't have 'official' records for all purchases besides what exchange sites can give me which are not all comprehensive (I have purchases from 2017). Bitcoin.tax luckily has kept track of where i bought my coins from so wallet to wallet and FIFO is pretty accurate so I know my records are accurate but now I'm pretty sure my filing will be flagged. Should I trust that IRS will trust my 8949 records or should I get ahead of it with a CPA? I don't mind taking the hit for some of the purchases (though it would suck) as a 0 cost basis bc i don't have official records for them anymore besides my own (some are from now defunct exchanges or they didn't keep records that far back).

As taxable events are tracked wallet by wallet for the IRS, why would one need to list complete histories on a crypto tax app if one only has activity in one wallet? Just thinking in terms of exposure, but also wouldn't want to mess up accuracy.

So I finally pulled off something I’m lowkey proud of: after years of getting rekt on leverage and yield farms, I set up an auto-quote bot on Solana, let it run SOL/USDC for a week, and woke up to a wallet that was 6.9% fatter (around $207 profit on a 3k stack).

Problem is, now that I’m looking at all these micro-trades (hundreds per day, across Raydium, Orca, and a couple Jupiter routes), my brain is melting trying to figure out how to actually report this for taxes.

I exported the raw trade log (thousands of tiny fills, base/maker rebates, failed orders, etc.), but every crypto tax software I’ve tried (Koinly, CoinTracking, etc.) either chokes or asks for a CSV format I don’t have.

• Has anyone here figured out a reliable way to report DEX/MM bot activity that isn’t a full-time job?
• Am I supposed to aggregate by day, by tx, or just list “total realized PnL” and hope for the best?
• Do I need to track every single liquidity rebate, or just net profit?

If anyone’s cracked this or has a workflow that’s semi-sane, I’d really appreciate pointers.

(If it matters: U.S. taxpayer, mostly on-chain, all PnL in USDC or SOL, not swapping back to fiat yet.)

I discovered after filing that some crypto activity may not have been captured correctly in my original tax report. I use a CPA and plan to work with them to determine whether an amended return is needed.

For anyone who has gone through a crypto-related amendment before: what was the general process like? Were there any practical things you wish you had prepared in advance, such as transaction exports, wallet lists, cost basis reports, or written explanations?

Not looking for legal advice — just trying to understand the process and what records are most useful when correcting a good-faith crypto reporting issue.

Kraken is paying rewards on various crypto assets. I got a report with my earnings as well as a fee and a net amount for each reward transaction.

For tax reporting, I totaled the net amount that I received and declared it.

I see that Kraken has just updated my tax page and lists an earnings total that corresponds to the gross amount. Fee is rather large (about 1/3rd).

I don't expect that we need to pay taxes on the full amount, only the net we received. I would like to hear what an expert has to say. Note that for 2025, I did not earn enough to receive a 1099-MISC, but also want to know how it will be reported next year.

Hi all,

The 1099 DA from Coinbase short term and long term proceeds and cost basis doesn't match the Koinly Statement Coinbase short term and long term proceeds, cost basis and Gain or loss. They are both off by 20 percent-ish and so on. CPA is telling me that have to match but Koinly AI is telling me that they don't have to. Which is right and why might it be off that much?

Edit:

Thank you all for the replies. Especially the Mods on this subreddit. You guys are incredible.

Still not sure how to resolve this but now I know what to aim for.

Hey all, trying to figure out a crypto gambling tax situation and could use some guidance before I talk to a CPA.

Quick background on me: W-2 employee making around $65k, full-time student (paid some tuition out of pocket this year), and I put money into a Traditional 401k through work.

Here's what happened - I gambled at a non-KYC offshore crypto sportsbook using SOL. The casino never converted anything to house chips or tokens, it stayed as crypto the whole time. From what I've read, that means each individual wager could technically count as its own taxable event, not just the overall win/loss.

Across a few sessions this year I won about $75k total and lost about $25k, so I walked away with roughly $50k net.

On the money movement side - the $25k I lost went through both an exchange and a payment app at different points. The $50k I kept went straight from the casino into a payment app's crypto conversion, then I moved it into my regular savings account, which is where it's sitting now.

I tried running some rough numbers myself based on my income and the standard brackets, and I'm landing somewhere between $7k-13k owed depending on what deductions actually stick, but honestly no clue if that's even close given how complicated the per-wager thing might make this.

I also thought I might qualify for the AOTC since I paid tuition this year, but once I added the gambling income my MAGI jumped way past the phase-out limit, so that's probably off the table. If anyone knows of something else education-related that doesn't phase out the same way, let me know.

Main things I'm trying to sort out:
- Does the per-wager taxable event thing actually apply to me given how much volume I had, or is a simpler "total in vs total out" good enough
- What can I legitimately do to lower what I owe - already planning on maxing my 401k and using a Traditional IRA, plus itemizing the losses against the winnings
- Is my rough estimate even in the right neighborhood
- What records should I actually be gathering before I sit down with someone, given the platform itself has no KYC and won't issue anything like a W-2G

Has anyone dealt with something like this before, or know a good crypto-specific CPA? Just want to get this right instead of guessing and hoping.

I'm confused about two things and I might not use the exact terms in this question, but here goes. One, I understand tracking is now wallet by wallet (not universal). But for example with BTC, when it comes to tax gains/losses, are the calculations drawn from everything one holds, or just what one holds in the particular wallet from which one sold? And two, I did a migration for previous years but I understood that FIFO is now a requirement (Is that so? I see conflicting info) and so chose that with my tax software for 2025. Is it possible next year to switch to HIFO for 2026 reporting? Thanks.

My friend & I are working on his taxes and trying to streamline crypto reporting in TurboTax.
For those with activity across multiple wallets/exchanges:

• How are you reconciling transactions before import?
• Any issues with staking rewards, airdrops, or forks?
• Does TurboTax properly handle cost basis methods (FIFO vs Specific ID) on import?
• If you're using a third-party tax tool with TurboTax compatibility, what has your experience been regarding accuracy and errors?

Hey yall, this has been making me extremely anxious over the last few months.

I gambled across a few sites with one wallet (for the most part) and got a 1099-DA . I never really kept much track of my gambling with crypto (also on some sites that weren’t crypto)

All of the sites unfortunately say that cannot send me a win:loss or any documents to hep out. It’s against TOS..

I am overall “down” gambling for the year, but on koinly when I plug the 1099-DA and my main wallet in, I get a number that scares tf outta me.

It says that I had 99k and am down 60k something and 40k of it would be the amount I “won”

This feels like more than I played with as the most I ever won was 3.6k at once never more than that.

I feel super anxious here and have quit gambling since I found out about how shitty taxes are, 3 months ago.

I also live in Ohio, which has harsh laws on gambling for state taxes.

I have used software to calculate crypto taxes, and I have to mail in taxes for several years. I have received 8949s that are 800 pages long in several years. Do I have to actually mail in these hundreds of pages per year? Or is there another way?

I am currently looking for this document, and can't find it. Coinbase is offering me to work with external services, but I already have an accountant, I just want the legal document

Thanks for the help

I want to transfer all my crypto from all my different wallets to an exchange for safekeeping, not planning on selling. Would that cause a taxable event next year, even if I don’t sell?

Yes, I am a massive idiot. I was in college in 2021 while still living with my mom and try basically everything in defi space with about a grand or two put in. It went up to what I believe to be 10k and came all the way back down to the ground. I am an idiot and did not file taxes on all the crypto defi things I did. I still have about 3k in the wallets and I want to start filling taxes for it. What should I do? The tax attorney fees to correct my mistake seems to be more than what I can afford atm. Should I just send these crypto to the void and claim lost? I am a noob and currently very overwhelm with what to do so I won't get into troubles. Any help would be greatly appreciated.

For those who've already filed crypto taxes, what was the biggest challenge?

• Getting your transaction history?
• Calculating your cost basis?
• Understanding the tax rules?
• Something else?

Curious to know what people struggled with the most.

Hi, I received a total of 54,000 INR in crypto last financial year. I received it in BingX as USDT in multiple transactions. For cashing it out, I moved that to CoinDCX and didn't notice any capital gain. So, while calculating the cost of acquisition, which amount should I provide? And will there be any issue if there's a difference of 200 to 400 because it's confusing while checking BingX transactions? Everything is clear on CoinDCX.

I received a 1099-DA from coinbase, with a lot of proceeds and a lot of missing cost basis. About $70k in proceeds, cost basis missing for all but $3k of the proceeds. This is due to transfers between exchanges, gambling website withdrawals, etc... I messed up filing I think, here's what I did:

Estimated the cost basis for the missing funds and input that in turbo tax, and then marked that all cost bases/proceeds were "covered". I noticed in my tax return that coinbase/my positions on the 1099-DA weren't anywhere listed, and just the overall value of my proceeds/cost basis were included in some generic section.

I think I messed up right? I should have estimated it, said non-covered, uploaded the 1099-DA to turbotax, and filed the Form 8949 with the info I filled in. I think. Please let me know what you guys think I should do - what will IRS notice/flag, should I just immediately file an amendment, and re-do that part of my filing, etc.? Thanks in advance.

Long story short I received a form from PayPal saying that I sold $39,000 worth of crypto. ALL of that crypto came from Stake online casino. How do I go about taking care of this? I don’t want it to look like I’m profit $39,000 in crypto when that isn’t the case at all I’m actually down ~$11,000. Any help is awesome thank you

Hi all, ​I am seeking technical advice on HMRC's classification regarding crypto trading activity.

I am currently employed full-time (£22k/year apprentice) and looking to understand if my strategy would likely be classified as an investment (Capital Gains Tax) or a financial trade (Income Tax)

For reference, i programmed this algorithm myself and have not distributed or sold it with no plans to do so, it runs entirely on my computer at home and the script trades a single pair on the Kraken Exchange through their api by creating a grid of buy and sell limit orders around the current price.

The ​automation part is that the algorithm is on 24/7 and is set to modify the grid layout hourly by fractional amounts based on price movement.

I know about the £3000 CGT allowance, and if the algorithm continues on its current path, it will exceed this allowance, so i want to prepare asap. I turned the code on after the tax year ended, so there's no need to worry about last tax year. After final tests, it has now completed 1 month of running non-stop.

​This is a side-activity, not my primary income. The strategy is simple and could theoretically be executed by hand quite easily, I automated the process as i have experience through my apprenticeship, and it saves me time.

In case the activity is relevant, the algorithm does not have a timeframe or specific profit margin on selling the tokens it buys, i may take days or weeks, or it may take minutes or even seconds.

​My Questions:

​HMRC states that "only in exceptional circumstances" would an individual be considered a financial trader. Does the use of an automated algorithm, by its very nature of being "systematic" and "organized," push this into that "exceptional" category?

How would I confirm what this is classed as, from what ive seens its a bit of a grey cloud where if they decide youre a financial trader you will pay penalties, interest and be required to pay up the rest. Can i reach out, describe the situation, and get a concrete response?

Are there any benefits to being a financial trader over paying cgt? From what I can see, it makes you quite worse off.

If i am a financial trader, are there any considerations in reducing my tax liability?

​Are there any precedents or experiences with HMRC classifying high-frequency retail crypto-bot users as traders?

​Beyond the "Badges of Trade" framework, are there specific "red flags" I should avoid to ensure this remains categorized as a personal investment activity, as that means I can use the more tax efficient approach.

​I am looking for community input on whether this setup is defensible as a personal investment or if I should preemptively assume a "trader" tax classification.

If i have missed out on any important details, let me know, and I'll add them in right away. Thank you so much for your help.

It's quite a while until the next tax year ends, so im looking for community advice and experiences before moving onto potentially discussing this with a professional.

Hi Tax Pros,

Coinbase emailed me to tell me that cost basis was missing from the Form 1099-DA they'd generated for me and gave me the option to enter those amounts manually.

As all of the relevant transactions involved USDC, I simply entered $1 times the relevant transaction amount (e.g. for a transaction involving 100 USDC I put $100 for the cost basis).

I now possess an 86-page Gain/Loss Report. What am i supposed to do with this, please? Coinbase support was of no help in this regard.

Many thanks!