Bitcoin Tax Services

In the US, cryptocurrencies are treated as property for tax purposes. This means you'll pay capital gains tax when you sell, trade, or use cryptocurrency. The tax rate depends on how long you held the asset (short-term vs. long-term) and your income tax bracket.

If you only purchased cryptocurrency with fiat currency (like USD) and held it without selling, trading, or using it, you generally don't have a taxable event to report. However, some tax forms may still require disclosure of cryptocurrency holdings.

Mining and staking rewards are typically treated as ordinary income based on the fair market value of the cryptocurrency at the time you receive it. This income is subject to self-employment tax if mining is considered a business activity.

If you're missing transaction data, we can help with historical reconstruction using blockchain analysis, exchange API data, and other methods to create a compliant tax history. It's important to make a good-faith effort to report all transactions.

NFTs are generally taxed like other cryptocurrencies - as property. Creating and selling NFTs may generate ordinary income, while buying and selling NFTs as investments typically results in capital gains or losses. Special considerations may apply for creators and collectors.

Failing to report cryptocurrency transactions can result in penalties, interest, and in severe cases, criminal prosecution. The IRS has increased enforcement in this area and receives data from major exchanges. We can help with voluntary disclosure programs if you have unreported crypto.