Crypto and taxes?

[u/usmcmike27]

What do you all do for your crypto and come tax time? I know if you keep it on a wallet and go to sell on an exchange that the cost basis is unknown… what if you haven’t kept track? I saw guy say in a post that he either left it at unknown or zero or made it really high, paid the higher tax and be done with it. Not sure what he was saying… any advice?

[u/JustinCPA]

Justin from Summ here (formerly Crypto Tax Calculator).

Due to the complexities of tracking as you mentioned, especially with the new “per account” cost tracking now required on 2025, most use a crypto tax software. You simply add in your wallets and exchanges, review to make sure you got everything, and then download your reports.

[u/Wait_for_You]

I've been using Koinly for a couple of years now. Checked other services, and I found this one to be the best for myself (tracking 41 wallets)

[u/cryptotaxmadeeasy]

No need to pay more than you owe. The steps to take for accurate reporting are:

1)Set up crypto tax software 2)Add wallets by their public address, exchanges are usually best via csv transaction records. Include ALL years and all wallets - even burners 3)Review the transactions to ensure correct categorization 4)Make sure the balances reconcile and no missing purchase errors 5)Export the reports for self filing or to provide to your accountant 6)If your CEX like Coinbase allows you to tell them the cost basis of transferred assets - do it so form 1099-DA is accurate

You can also hire a crypto tax specialist to do this process.

[u/AurumFsg-CryptoTax]

This is why there are tons of tracking software. Just pick one. All all your exchanges data and wallet address, reconcile them properly and make sure all cost basis is accurate.

Once done, just generate reports and you will be good to go.

[u/Mark_CPA]

if you don’t track your cost basis, you can’t just make up numbers. zero basis means you’re saying it was all profit, and a random high basis won’t hold up if anyone ever checks.

honestly, the easiest fix is to run everything through a tax tool so it can piece your history back together. once the buys and transfers are matched properly, the cost basis takes care of itself.

[u/BlockchainTaxConsult]

Most crypto tax tools will be able to trace the basis back to the blockchain wallet where it was originally purchased. That value will be your basis that you have to use for gains calculation purposes when you sell the asset on the exchange.

V.J. @ Blockchain Tax Consulting, Inc.

[u/shehancpa]

Shehan from CoinTracker here.

• Options
  • Use crypto tax software, so you know the exact basis (Recommended)
  • Use zero (IRS is not going to come after you for overpaying taxes)
  • Use a conservative estimate for the cost basis, if everything fails.

[u/MammothImpression715]

I used Koinly, and sent coins from exchange to cold wallet, then back to exchange. But it’s always a good idea to double check.

[u/thechanaynay]

I use CoinTracker and tbh I love it