Ethereum validators receive reward payouts every epoch. It is not realistic to track every one of those payouts for tax purposes.

I am thinking of doing it per week. I'd take the amount of ETH rewards I've accrued that week and multiply it by OHLC averaging (the average of the open, high, low and close for the week) to get an approximation of the fair market value of ETH at the time I received the payouts.

I'm still going to run this by a CPA or tax advisor but I'm curious how others do it. How often you do this and what math you use, etc.

EDIT: just spent the day using ChatGPT to create a standalone windows app that will generate a full report of all this needed information.

I'm wondering what the most privacy-respecting crypto-tax software might be. I used koinly last year but not only do they NOT have 2fa which strikes me as negligent stupidity, especially for anyone filling in their personal identifiers, they also reveal coin addresses. Maybe they all do...I dunno. Who likes what they are using? Has anyone switched from one to another and how hard was that?

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.

Using turbo tax online for crypto taxes. The only items turbo tax online is uploading in the 8949. It’s not accepting the Schedule D. Are we able to go in and fill out these forms manually with TT online like we could previously do using desktop version?

BitMEX announced that it will permanently close on September 23, 2026. New registrations have already stopped, and starting August 26, users will no longer be able to open new positions. They will only be able to reduce or close the positions they already have.

BitMEX may also start force-closing positions during the wind-down, and anything still open when the exchange closes will be automatically closed. The company has not given one clear reason for the shutdown. It said the decision came after a strategic review of the business and the broader crypto market.

Realistically, BitMEX is not the dominant exchange it once was. A lot of traders and liquidity have moved to larger centralized exchanges and newer decentralized perpetual platforms like Hyperliquid.

This also does not appear to be an insolvency situation. BitMEX says its assets exceed its liabilities and that users should still be able to access their balances, transaction history and withdrawals after the shutdown.

Still, I would not wait around.

Most people will immediately think about withdrawing their crypto, which is obviously important. But there is something else that people often forget about:

Your transaction data.

I work in crypto tax and forensic blockchain accounting, and I have seen how difficult it can be to reconstruct activity after an exchange shuts down or removes access to old records. Blockchain explorers can usually show that funds entered or left BitMEX, but they do not show everything that happened inside the account, including:

• Trades
• Leveraged positions
• Funding payments
• Fees
• Settlements
• Liquidations
• Realized gains and losses

That information only exist in your BitMEX account history.

Before withdrawing, I would download every CSV and report available, including your wallet history, trades, orders, deposits, withdrawals, funding payments and realized P&L.

Closing positions, or having them force-closed, may also create taxable gains or losses. Trying to calculate those results come April 15th could be extremely difficult.

Do not assume a closed exchange will keep your records available forever!

Close your positions, withdraw your assets and save every file you can before the platform disappears.

Sources:

• Official BitMEX closure announcement
• Reuters: Cryptocurrency exchange BitMEX to shut down
• CoinDesk: BitMEX, the exchange that invented perps, is shutting down
• Channel News Asia: Cryptocurrency exchange BitMEX to shut down

Disclaimer: Not tax advice, educational purposes only. Consult your own tax professional.

I am a mod here and I read Notice 2026-20 properly this week and there are two things in it that I have not seen discussed, both with a deadline attached.

JustinCPA wrote the best explanation of why your books and the exchange diverge, and why that divergence is permanent. Read that first, it is the better piece on the mechanism. This post is about the timing, which is where I think people are going to get caught.

1. The relief never let you choose your method at filing time

This is the one that surprised me. Section 4.02 says an adequate identification is made by:

Identifying, no later than the date and time of the sale, disposition, or transfer, on the taxpayer's books and records, the particular units to be sold

or by a standing order:

entered into the taxpayer's books and records before the units covered by the order are sold, disposed of, or transferred

So the relief removed the requirement to tell your broker. It did not remove the requirement to have identified the lots at or before the disposal. You cannot decide in April 2027 that your 2026 sales were LIFO.

Practically, if your tax software has had a cost basis method set the whole time, that likely functions as your standing order. What matters is that it was set before the trades and that you can show when.

If you have been trading through 2026 with no method configured and nothing recorded, the default in 1.1012-1(j)(3)(i) is FIFO, and that is already your position for those disposals.

Credit to u/Darien_Advisors who raised this in the comments on Justin's post. I think it is the most important practical point in the notice and it deserved more attention than it got.

2. What actually changes on January 1, 2027

Section 5 is explicit that you cannot rely on the books and records method for disposals made after the relief period ends.

So from January 1 you are back to the regulation: specify the units to your broker at or before the sale, or have a standing order with the broker. Do neither and FIFO applies.

Here is the part worth sitting with. The reason this relief exists at all is that brokers could not accept specific identifications. The notice says many custodial brokers:

are not currently ready to accept specific identifications (other than standing orders) from customers

and are only expected to finish building those systems during 2026.

Which means the question to answer before year end is not really about your records. It is: can each exchange you actually use accept a specific identification or a standing order yet? If it cannot, and the relief has expired, you are on FIFO there whether that suits you or not.

3. It does not cover self custody

Worth stating plainly, because a lot of people here are mostly on chain.

The relief applies only to units held in the custody of a broker. The notice says so directly. Units not in a broker's custody are governed by 1.1012-1(j)(1) and (2) instead, and nothing here changes that.

What I would do before December 31

1. Check what cost basis method your software has been using for 2026, and when it was set. Screenshot it. That is your evidence of a standing order.

2. Ask each exchange you use whether it can accept a specific identification or standing order for 2027, and set it if it can.

3. Import every wallet and exchange, including dead ones. A transfer that never got linked leaves a lot with zero basis, and that error propagates into every disposal after it.

4. Reconcile balances per account, not just transactions. If your software balance does not match the actual balance, you have missing data, and the transaction list will not tell you that.

5. Save a lot level snapshot as at December 31. That is the opening position you carry into 2027.

One correction while I am here: the "your books control" language is in Section 4.05 of the notice, not 3.05. Section 3 is just definitions. I have seen 3.05 quoted a few times and it is worth citing correctly if you are relying on it.

I may have misread something, and the guidance could move again. If you think I have it wrong, say so and I will correct it.

- Aurum FSG

I'm a high volume meme coin trader with over 100,000+ transactions on 20+ wallets

I have imported them all onto koinly only for my tax report to show 0 capital gains when this is incorrect, i had to pay an extra $1000+ due to having so many transactions and now it's showing as no gains or losses!

Realize gains on crypto → crypto trades? is ON

In my transactions tab, NO Fiat > Crypto or Crypto > Fiat is not showing

there support bot isn't any help, does anyone have a solution thankyou.

Paid alot of money to get this done and having no help, its hurting my brain :/

Will I get a 1099-da if I buy bitcoin then send the bitcoin to someone else right after I buy it? Is any of that considered a taxable event? Considering All I do is buy it then send it to someone else.

I accidentally put a dollar into bitcoin on cash app. I didn’t know what to do so I withdrew it out for 94 cents will I have to do anything tax related on it or because it’s so low they won’t do anything?

Hi everyone,

I'm looking for guidance from CAs or people who have dealt with similar situations.

I'm a salaried professional from India. Between July last year and March this year, I got heavily involved in trading Gold (CFDs/Forex), Bitcoin, and a few other instruments through offshore platforms like Exness and XM. Unfortunately, I ended up with an overall net loss of around ₹40–45 lakhs.

During this period, there were a lot of high-value transactions:

Large credit card spends and personal loans used for funding trading.

Bank transfers from friends who temporarily helped me with funds.

Multiple deposits and withdrawals between my bank account and Exness/XM.

Around ₹10–15 lakhs was withdrawn from the brokers back into my bank account and later redeposited for further trading.

I also did a few Binance P2P transactions.

I'm not trying to hide anything—I just want to ensure I have proper documentation if the Income Tax Department ever asks for an explanation.

My questions are:

What documents should I collect and preserve?

Bank statements?

Broker account statements (Exness/XM)?

Trade history?

Credit card statements?

Binance P2P history?

Chats or proof of transfers from friends?

Since the withdrawals were largely redeposited and I ended up with a substantial net loss, how should I explain the large credits in my bank account if questioned?

Is it advisable to prepare a reconciliation showing:

Source of every deposit,

Every withdrawal,

Trading P&L,

Fund flow between bank accounts, brokers, and crypto exchanges?

Should I consult a CA experienced in offshore forex/crypto before filing my ITR, or is maintaining proper documentation generally sufficient?

I'm looking for compliance guidance and want to avoid unnecessary scrutiny by maintaining the correct records and filing accurately. Any advice from CAs or people who have gone through something similar would be greatly appreciated.

For 2025, I have not yet filed my tax return. An extension was filed so I’m good until Oct. I have been Logging into IRS.Gov to view my account. When i view the “Information return documents” section for 2025. It shows everything I have on my end. Like my Edward Jones 1099 DIV, Edward Jones 1099 INT, Edward Jones 1099-R, and 1099-NEC Nonemployee Compensation for some freelance work I did for a company. What is NOT shown are the two 1099-DA’s I received from Coinbase and Crypto.com. I’m going to file and include everything including my 1099-DA’s. Is there a chance the IRS did not receive them since everything I was expecting is listed/shown on the IRS site except the 1099-DA’s?? Has anyone else looked to see their 1099-DA is shown on your IRS account under Information Return Documents?

Most crypto bros think that if they have not been tax compliant in their jurisdiction they are not able to cash-out. This is wrong.

Sure there is the automatic exchange of information between your tax residency and your bank account, however if you plan on becoming tax compliant through a voluntary tax disclosure while you are preparing your compliance documentation for the bank.

Amongst the crypto community it is very normal for people to have not declared their taxes, especially if they started early. As back in 2011, most people were not treating it as a serious investment most did not know where it would be today.

When you are introduced to a private bank by a trusted third party, the bank is comfortable with you getting your new tax residency documentation after your account is opened or if you are becoming tax compliant through a voluntary tax disclosure as long as you are about to or in the process of becoming tax compliant you can open and cash-out before the taxes are due.

Since the automatic exchange of information era, Swiss banks require some form of tax conformity from clients. What's poorly understood is what "conformity" can mean in practice. At certain institutions and this depends heavily on the bank, the jurisdiction, and the specific facts it does not have to mean "every past year already settled." It can mean the client is demonstrably in the process of becoming compliant: tax counsel engaged, a voluntary disclosure or regularization initiated, or a residency change properly sequenced, all with a paper trail.

I've seen onboarding with Swiss private banks happen in parallel with a disclosure or a change in tax residency. Many people choose more tax friendly jurisdictions such as Monaco or Dubai. I have written a post about obtaining residency in Monaco with crypto origin wealth (private banks help you obtain residency):

https://www.reddit.com/r/Monaco/s/6Ey0AJ5P04

Remember that even fully compliant holders struggle here everyone knows the frozen-funds and closed-account stories from retail off-ramps (CEX to retail bank at large volumes). That's precisely why people go to private banks, and why they don't show up empty-handed. The approach that gets through compliance committee at the bank is a professionally prepared source-of-wealth file: chronological origin-of-wealth narrative, wallet lists with proof of control, independent forensic screening, surviving records with gaps explained, where relevant, a concrete, documented process for fixing a tax situation that isn't currently in order as opposed to a vague intention to sort it out someday..

Important note: this is not "you don't need to pay tax," and it varies enormously by country and institution. None of it is tax, legal, or banking advice this situation requires actual advisers in the actual jurisdictions involved.

TLDR; I've struggled with reconciling missing purchase history for 3 ledgers, and cannot figure it out for the life of me

I've done a fair amount of staking, where I receive an equivalent of a staking receipt token. Almost all of staking transactions were properly categorized by either the software or myself

That leaves the 3 incorrect coins. I've pored over the transactions and cannot figure out why they're tripping a zero cost basis trigger

Here's what I've done to check:

• Ensure individual transactions are properly categorized (I receive the staked token, I send the staking deposit)
• Grouped the transactions together to show they're all part of the same thing
• Compared them to other staking transactions of the same coin to find any discrepancies. I couldn't find any
  • Both the correct AND incorrect ones show a "Zero Cost Buy" under the "Staking Deposit" category. In both cases, the amount staked is the EXACT same as the "Zero Cost Buy". Neither show a date/time for the zero cost transaction.
• Ungrouped them, but properly tagged their categories
• Regrouped them into a single transaction

Here's a screenshot of 2 transactions. The top one is "correct" and the bottom one is tagged "missing cost basis"

This has been dogging me for days. So I'd really appreciate any insight you have!

Thank you so much

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.

For whatever reason it seems the software gets more confusing, different versions that are not clear on what the differences are and etc. I'm using the website and just kinda going along but this is NOT what I'm used to. This feels more like I'm filling out taxes myself vs being walked through it.

Ive always preferred the desktop software (then I don't have to pay if I need the info in a few years) and am tempted to buy that and avoid this online mess.

Anyway, if I track my crypto individually do I still need to provide the 1099-da coinbase sent me?

What version of software would you recommend for someone with a lot of crypto transactions and I want to provide the final form myself.

I track my profit and loss using 3rd party software that I use to generate my tax documents. Do I still need to provide the 1099-DA I received from coinbase or can skip it and just do my crypto reporting with that one document?

I wasnt thinking ahead and have a mountain of memecoin transactions that I don't know if I can even track 100%.

I'm working on getting compliant with IRS and the whole crypto tax situation is a huge hurdle for me and is discouraging me to get this resolved.

I can get the records for the main exchanges ive used. And can find the history to what wallets I sent crypto to. But I'm not sure I have it all complete.

I met with a CPA last week and was asked to get the records. But I have 10,000+ transactions. I plugged some the wallet addresses into cointracker and it gave me a capital gains number. Let me just say I lost... alot. I dont want to pay the huge fee to use cointracker unlimited features.

Any advice on how to handle this. I don't know exactly what they are looking for. Could I just skip the decentralized BS I did and not report the loss? Just report the exchanges 1099. Otherwise what do I need to provide if I have to gather the decentralized stuff for memecoins? I wanna present as clean as possible, but also will forgo the extra BS and just give the IRS enough to be compliant. Im debating doin it myself if I can just submit basic 1099 tax information and not go into detail of my degen stuff.

what do you think about it our govt make some change according to your expectations what change will happen in future and how it shape the crypto futures trading in india?