Crypto! How to Secure Your Wallet in 5 Steps

Crypto! Tax Reporting Tips Every Investor Needs

1. Know how your jurisdiction treats crypto

• Capital gains for disposals (sell, trade, spend, or convert to fiat) vs. ordinary income for rewards/mining/staking.
• Different rules often apply to short-term vs. long-term holdings.

2. Track basis and dates

• Basis: record purchase price plus fees.
• Holding period: date acquired and date disposed — determines short- vs. long-term.

3. Keep detailed records

• Required fields: date/time, transaction type, asset, quantity, value in fiat at time, fees, counterparty (if known).
• Use exchange/exported CSVs and screenshots as backup.

4. Include non-obvious taxable events

• Trades between cryptos, airdrops, hard forks, staking rewards, lending interest, and receiving crypto as payment are typically taxable events or taxable income.
• Gifts and transfers between your own wallets usually aren’t taxable but still need records.

5. Report losses to offset gains

• Realized losses can offset realized gains; excess may reduce taxable income per local rules. Track wash-sale applicability (varies by jurisdiction).

6. Use consistent valuation method

• Convert crypto value to your local fiat at each transaction using a reliable exchange rate source; document the source and time.

7. Use tax software or professional help

• Consider crypto-specific tax tools to import transactions and generate reports. For complex situations (DeFi, cross-border, large volumes), consult a tax professional.

8. Watch deadlines and required forms

• File relevant forms for capital gains, self-employment/ordinary income, and foreign asset disclosures if applicable.

9. Stay compliant with exchanges

• Keep records of KYC/withdrawal limits and any tax forms issued by exchanges. Respond promptly to any exchange tax statements.

10. Keep records for the required retention period

• Retain transaction records for the time period your tax authority requires (commonly 3–7 years).

If you tell me your country, I can give filing steps and relevant forms specific to your jurisdiction.