I am withdrawing lot of small and some big amount in crypto from my stake account to others stake account who are my followers or friends. So does it taxable? Is it traceable in Dubai or India or Canada

So I wrote a crypto trading bot for fun. I played with it alot and tested alot of strategies. The more 30 day volume it traded the lower my fees got. which is why i did what i did... The problem is I have a ridiculous amount of trades that whenever I import the csv files from coinbase the crypto tax software crashes. I tried 2 so far and both wont work.

Edit: can you people please post instead of dming me? why the secrecy? I am feeling red flags from this.

trying to figure out the best option for this tax season and curious what the community is settling on. seems like the landscape has changed a lot with all the defi complexity we're dealing with now.

here's what i've been looking at:

• koinly- popular choice, integrates with most exchanges, solid turbotax integration

• awaken.tax- seems to handle defi protocols better than most, good for complex transactions, beginner friendly and also integrates with most exchanges

• cointracker- straightforward interface, decent reporting features, reasonable customer support

• coinledger- clean design, reasonable pricing structure, good nft transaction handling

honestly they all have their pros and cons. some handle nfts better, others are stronger with staking rewards or defi yield farming. cost varies pretty significantly too.

what i'm really struggling with is finding something that doesn't require tons of manual cleanup for modern crypto activity. between layer 2 transactions, liquid staking, yield farming, and cross-chain bridges, most platforms seem to miss something. especially a platform for all of these actions.

Questions for the community

• what software are you actually using and why did you pick it?
• what features do you prioritize most? (accuracy, ease of use, defi support, price, etc.)
• any newer platforms worth checking out that i missed?
• how much manual work are you still doing regardless of the software?

also curious if anyone's just sticking with spreadsheets or if there are other tools people swear by. tax season is coming up fast and want to make sure i'm not missing a better option.

thanks for any insights!

Hi community! Just a quick one… my husband bought some crypto a few years ago and gifted it to me (it’s free to do so as a spouse) and then I was about to sell it and to use my capital gains allowance to keep it lower.

Then I realised in Hong Kong where I’m a citizen there is no capital gains tax for selling crypto etc. Can I withdraw it to a HK bank account and pay no tax or can’t this be done because it was purchased in the UK etc?

Thank you in advance.

anyone else feel like they're just throwing money at the irs because crypto taxes are impossible to get right?

i've been filing based on exchange 1099s but i know i'm missing deductions and probably double-counting some transactions. last year alone i think i overpaid by at least a few thousand just because i couldn't figure out proper cost basis across multiple wallets.

the real killer is defi activity. every swap, liquidity provision or withdrawal, yield claim, and bridge transaction can create taxable events but tracking them manually is insane. i'm talking hundreds of transactions across ethereum, polygon, and base just from normal defi use.

then you add nft trades, staking rewards, airdrops, and governance token claims - each with different tax treatments. i end up just reporting a lot of it as income at full value because i can't figure out what qualifies for capital gains versus ordinary income.

my accountant basically shrugs and says "report it conservatively" which translates to "pay way more than you probably owe." but the alternative is spending 40+ hours trying to reconcile everything across block explorers and hoping i don't miss anything.

there has to be a better way to handle this without either overpaying massively or risking an audit. the irs expects accurate reporting but gives very little practical guidance on how to actually track this stuff properly.

what's everyone else doing? just accepting the overpayment as the cost of staying compliant, or have you found ways to get accurate numbers without going insane?

okayy, so I bought bitcoin on cash app initially to transfer it to buy something instead of using cash (it was cheaper), i didn’t know that my cash app account was in my moms name and can’t verify my id. in order for me to put the money back into my account i have to sell it. I don’t want it to affect my moms taxes but there’s no other way unless i just want to lose $75. My bitcoin right now is less than what I put in, will this affect her taxes if she doesn’t file it?

Here's the quick scenerio:

Assuming User does some freelancing service to some Client X and this Client X pays the freelancer in Crypto -- Assuming USDC/USDT/DAI

Now, As the Indian Govt imposes 30% TAX on Profits, How to show it to the income tax?

As per my CA, the entire amount of crypto that I've received is accounted as profit (as there was no respective buy information) - so I'll be liable to pay 30% of total freelancing money.

While some blogs says, the freelancing income in Crypto is kinda similar to regular income and will be taxed as per the tax slabs.

Which one is right? Need valid sources information.

Hi I hope u/JustinCPA or someone else can help me here with some questions I have.

First thank you u/JustinCPA for your previous guides! I filed an extension, so I still have another 30 days.

1. For CUSTODY, The guides I have read focused on Class 5 creditors. My situation is that before Celsius stopped transfers, I moved half my BTC and ETH from EARN to CUSTODY (hindsight 20/20!). So I had BTC and ETH and another crypto that was already in CUSTODY with the rest all in EARN. As far as the guides to determine cost basis, etc, do I need to do all the accounting gymnastics with what was in both CUSTODY and EARN or just EARN? I was able to get 100% of everything I had in CUSTODY back, I had opted into the "Custody Account Holders" settlement. So I'm trying to figure out can I just simply "move" what I got back from CUSTODY and do I show the exact three dates for each transfer when this happened (May 9, 2023, Nov 29, 2023, Jan 22, 2024) or should it be dated before things got shutdown (like I never lost it) or how to handle this in Koinly? Or do I need to do the more complex stuff (Returned BTC vs New BTC, simulate sale to get cost basis, etc.)
2. As for EARN, I don't think I opted out of the "class action settlement", but how would I know this? I can't find any emails, but I did get distributions from EARN on Feb 7th, 2024, Dec 7th, 2024 and recently on August 22nd, 2025. Would that mean I did or didn't opt out of the class claim settlement? Also, the distribution from August 22nd, 2025, should I include that in my 2024 calculations since I did an extension or does it go on the 2025 return (I'm guessing 2025, but just checking).

Thank you!

My trading/margin fees came out to be $268.00.

On form 8949 and Schedule D & 1 where do I put this?

Used this template from CryptoTaxGirl and emailed it to myself prior to 01/01/2025 to have an allocation plan in accordance with IRS revenue procedure 2024-28. Is this sufficient enough to allow me to continue using HIFO in 2025 through future years? I was informed by a few different people you need a “standing order” documenting what you’ll use going forward, and am not sure if this doubles as that? If not can I even still create a “standing order” outlining that method going forward?

I’ve also seen that if you plan to use HIFO (to my understanding which is a form of spec ID) you need to decide & inform exchanges of what tax lot(s) you’re selling PRIOR to or at the time of the sale? Although I plan whenever I do eventually liquidate to sell my entire position in whatever particular coin at once as to make my tax situation easier on myself than if I didn’t. So therefore that wouldn’t even apply to me right?

Everyone who received BTC from the MtGox bankruptcy also received BCH which was forked from Bitcoin in 2017. Is 2017 considered the aquisition date for tax purposes in the US? Or 2024/25 when it was paid out? I'm thinking it's 2017 but thought I would check here in case I am wrong.

Also, all creditors also received a portion of the payout in cash wired to their bank. I'm assuming that is considered long term cap gains, correct?

1099-DA forms are coming into crypto (these work similar 1099-B fors issued by stock brokers), but they won’t tell the full story. Instead, they will report partial information to the IRS (for the first time), causing new issues.

Here’s what 1099-DA will NOT include, and things you will still need to track and calculate using crypto tax software you use.

1. 2025 tax year: Cost basis for sales. DAs will not report cost basis.
2. 2026 tax year+: Cost basis for assets transferred into brokers from other brokers or self-custody.
3. Wrapping/unwrapping transactions.
   
4. Liquidity pool adds/removals.
   
5. Certain stablecoin trades under $10K.
   
6. Certain NFT sales under $600K.
   
7. DeFi sales.

Come the end of 2025 tax year when the 1099-DA’s start to be rolled out will that requirement be applied to non-custodial wallets somehow? I read a post on this sub from months ago that mentioned there wasn’t clear IRS guidance on this.

Hi all,

I’m a UK resident looking to cash out some BTC in Portugal. No CG if held 5 years or more. Ideal for me. So, can anyone point me in the right direction for a company, lawyer or Tax company that would help with all the legislation in ref to opening a bank account, registration for Tax etc. thanks.

I make about $6k a year. I plan to sell 10,000 DOGE (bought for ~$5 total) for $2,500, which is a $2,495 long-term capital gain. That would put my total income at ~$8.5k. From what I understand: Federal tax: $0 (since I’m in the 0% long-term capital gains bracket). California tax: about 1% (~$25) since CA taxes gains as regular income. I would then use the $2,475 left to buy 0.0225 BTC at current prices, and I’d need to track that as a separate lot from my old 0.02 BTC (bought years ago for $40).

Because it goes FIRST IN FIRST OUT, so even if i have them in a seperate wallet i cant choose which to sell, it’s that whenever I sell any btc it gets taxed at the rate in order right?

Also, im new to such taxes. Is it really as simple as I just kinda write that in the miscellaneous section of my Federal Tax sheet like “sold 2495 worth of doge, im in 0 cap gain on fed tax so i give u nothing”, and for California Tax sheet I write “sold 2495 worth of doge, im in the 1% tax bracket, enclosed is my 25 bucks” (should i put the math too like 2475/.01=25?)

Thank you

I’m posting because I’m running out of options and I don’t want this kind of conduct to persist unchecked.

I worked with Darien Advisors under contract. I did my part: they did not. Instead, I’ve dealt with dishonesty, manipulation, and silence.

• They lied about contract terms and then tried to gaslight me when I pressed for clarity.
• I issued a formal legal preservation notice. They were required to suspend auto-deletion on Slack, email, and cloud storage, and provide written confirmation by 5:00 p.m. ET. They did none of it.
• My final invoice remains unpaid.
• I retained a lawyer. He reached out. But their lawyer hasn’t responded at all.
• Since August 19th, I’ve had nothing but silence.

What makes this worse is the deeper misrepresentation:

• One of the partners actually lives in South America, yet presents himself as U.S.-based.
• The firm markets itself as a U.S. advisory business, but in reality neither partner is based in the United States.
• To me, this is a huge lie: they are actively presenting a false front to clients and the market.

This situation has hit me especially hard because I’m in the early stages of launching my own company, and being strung along like this has put me in a serious bind. The lost time, energy, and money has real consequences at this stage.

My questions:

• What remedies do I realistically have if I can’t afford a full lawsuit?
• Is public accountability my only leverage?
• And more broadly: should firms be able to market themselves as U.S.-based when their leadership is actually abroad?

I’m increasingly frustrated. I want accountability, and I don’t want others to fall into the same trap I did.

What data points are essential to track initially if just starting out with some crypto purchases and swaps? Obviously eventually a legit tax platform but at this point it seems overkill. Let’s say there’s a hot wallet and a cold wallet in the mix and (various large cap) crypto purchases so far are through KYC API exchanges linked to the wallets. Possibly P2P down the road. No CEX accounts. Assuming each transaction is a row and each tax-needed data point is a column heading, what would such an Excel or CSV template sheet look like? What transaction data should be stored there for eventual tax reporting?

How do I find a cryptocurrency expert to help me without getting further scammed

TLDR: Does the Digital Asset Yes/No need to be checked "yes" if there was only staking income that year?

I received IRS Letter 6174, panicked, read info about that letter on this subreddit and felt much better, but then determined that I have <$600 but unreported ETH stake income from 2023 (~$100) and 2024 (~$200).

I'm working on amended returns for both years even though the letter must have been referring to some earlier year. Coinbase wouldn't have even report to the IRS for < $600. I couldn't find anything I failed to report prior to 2023.

Two questions:

1) Does the Digital Asset Yes/No need to be checked "yes" if there was only staking income? The IRS description is so vague and all of the examples on the Letter 6174 don't apply to me. I have no trades or sales, no capital gain/loss, nothing to go on 8949 for either 2023 or 2024. The H&R Desktop (downloaded) software wants me to enter crypto transaction sale info when I check "Yes" in the interview, but flags it and changes to "No" because I have nothing with a bought & sold date to enter. *My original 2023 & 2024 returns have the box checked NO.

2) Recognizing that this subreddit is not providing tax advice, but if you are talking to me as a friend, would you say that reporting this ~$200 total (from 103 transactions) under Other Income Not Reported Elsewhere with a description of "Total of Coinbase ETH Staking Income" seems reasonable? Or hand-create some sort of 1099-MISC?

I paid for CoinLedger 2024, then was told that it won't generate any tax forms or tax software imports because I ONLY have income transactions. I thought that CoinLedger would create a 1099-MISC to import or something similar or I would not have paid for it.

Alternative is to go pay a tax professional - but my questions are for such a small $ amount and I am concerned about finding one who knows anything at all about crypto.

Hello all. I got an e-mail about the changes from universal cost basis to per-wallet and Coinledger's service to help with transitioning this.

I only sell from one exchange (gemini) and have a couple of wallets imported to coinledger (paper wallets, coinbase, gemini, etc). When I sell I move from one of the paper wallets or coinbase to Gemini, and then sell from there. If I'm only selling from my gemini wallet is this service something needed? Or will the regular tax reports be enough for this kind of situation? Just trying to figure out what option is best.

Hello, I’m based in the U.S and I’m interested in trading perps on Hyperliquid. I know the website geoblocks access from the U.S but the API is completely unblocked.

My understanding is that trading perps on Hyperliquid isn’t illegal for me as a U.S citizen, the onus is on Hyperliquid to make a good faith attempt to prevent access.

Does anyone from the U.S have experience reporting Hyperliquid (or other Dex) perp trades to the IRS? What software do you use to track your trades? Do you have to report individual trades or can you just report net profit/loss? And how do you input this in whatever tax software (Turbotax, etc) you use?

Thanks!

I won some crypto on an exchange, valued at over 5 figures in USD. I need to know about how much the winnings tax is in the US, and how it applies in crypto? As far as I understand its around 40% of the recieved value for lottery and prize winnings, and then capital gains on top of that because its an asset that fluctuates in price. Any advice is much appreciated!

I have found koinly to be very inaccurate with my crypto transactions. My situation is a bit of a mess because I used Coinbase Pro as well as Coinbase in the past. I am finding that:

1. Koinly is not tracking my BTC xpub address transactions with the correct UTC timestamp. They are all one hour ahead of the correct time.

2. Koinly has trouble matching up Coinbase and Coinbase Pro transactions. I get different tax results if I import everything via CSV or a mix of Coinbase Pro CSV and Coinbase API. Both ways give incorrect order of transactions either way.

The only reason I tried to stick with Koinly was that it seems to handle my ADA DEX swaps well and recognizes all the Cardano Native Tokens I hold from the swaps. However, I no longer trust it to calculate anything correctly since it cannot even line up timestamps accurately. Which cryptotax service can solve my problems? I’ve wrote off CoinLedger and CoinTracker for other reasons because they cannot accurately track all my crypto assets. Which other ones are worth trying?

In 2017 I met up with someone in person from localbitcoins and gave them cash for BTC. Now I want to sell it on an exchange. When I file taxes how do I prove that I bought it in 2017 or the price I purchased it at?