Frequently Asked Questions

Can I Deduct Crypto Losses On My Tax Return?

Yes, you can deduct cryptocurrency losses on your tax return to offset your capital gains. If your losses exceed your gains, you can deduct up to $3,000 ($1,500 if married filing separately) in net capital losses against your ordinary income each year. Any remaining losses can be carried forward to future tax years. To claim... [Read More]

Do I Need To Report Crypto Held In Foreign Wallets?

Cryptocurrency held in foreign exchanges or wallets may be subject to additional reporting requirements. While crypto itself is not considered a foreign financial account under current FinCEN guidelines, this could change in the future. If your account is custodial and involves fiat currency, it might fall under FBAR (Foreign Bank Account Report) or FATCA (Foreign... [Read More]

What Tools Can I Use To Track My Crypto Gains And Losses?

Tracking your crypto transactions manually can be overwhelming, especially if you trade frequently or use multiple wallets and exchanges. Fortunately, there are many software tools available to help you automate this process. Popular options include CoinTracker, Koinly, CoinLedger (formerly CryptoTrader.Tax), and ZenLedger. These platforms can import transaction history, calculate capital gains and losses, and generate... [Read More]

Do I Owe Taxes On Crypto Received As A Gift Or Airdrop?

Receiving cryptocurrency as a gift generally does not trigger a taxable event at the time of receipt. However, if you later sell or trade the gifted crypto, you must report the gain or loss based on the original cost basis of the donor and their holding period. If the donor didn’t provide the cost basis,... [Read More]

What’s The Difference Between Short-Term And Long-Term Capital Gains For Crypto?

The IRS distinguishes between short-term and long-term capital gains based on how long you held the cryptocurrency before selling or disposing of it. Short-term capital gains apply to assets held for one year or less and are taxed at your regular income tax rate. Long-term capital gains apply to assets held for more than one... [Read More]

How Is Crypto Taxed In The U.S.?

In the United States, cryptocurrency is taxed as property, not as currency. This means each time you dispose of your crypto—whether by selling it, trading it, or using it to make a purchase—you must calculate the capital gain or loss based on your cost basis (what you paid for the crypto) and the fair market... [Read More]

Do I Need To Report My Cryptocurrency Transactions On My Tax Return?

Yes, you are required to report cryptocurrency transactions on your tax return if they result in a taxable event. This includes selling crypto for cash, exchanging one crypto for another, using crypto to purchase goods or services, or receiving crypto as payment or through mining/staking. The IRS treats cryptocurrency as property, so each transaction must... [Read More]

Can I Deduct My Home Office On My Business Tax Return?

Yes, if you use part of your home exclusively and regularly for business purposes, you may qualify for the home office deduction. This applies whether you own or rent your home. The space must be used as your principal place of business or a place where you regularly meet clients or customers. You can calculate... [Read More]

What Records Should I Keep For Business Tax Filing?

Maintaining detailed and organized records is critical for accurate business tax filing. At a minimum, you should keep copies of income and expense reports, bank statements, invoices, receipts, payroll records, and any forms filed with the IRS. These documents provide support for deductions and income reported on your return. Digital bookkeeping software like QuickBooks or... [Read More]

Do I Need To Make Quarterly Estimated Tax Payments?

Yes, if you are self-employed or operate a business that does not withhold taxes from your income, you are generally required to make quarterly estimated tax payments to the IRS. This includes income from freelance work, rental properties, dividends, and business profits. The payments are due in April, June, September, and January of the following... [Read More]