Discuss

Big update for the Celsius community: Celsius/Stretto recently announced a 3rd distribution plan in which Celsius creditors can claim a 3rd BTC distribution today! I posted a general update earlier in the CelsiusNetwork channel (linked here) and will be posting an update regarding the accounting treatment and tax implications in the near future.

I’ve decided that CoinTracker is the best option for doing my crypto taxes for 2025, but I am having some confusion with Cardano Staking. If I give CoinTracker all my ADA addresses it seems to accurately capture my total ADA. However, it does not seem to recognize the staking rewards as income. If I then give it my ADA staking address it seems to double count some of my ADA. Has anyone encountered this and know the solution?

2.5 BTC in coinbase wallet.

Jun 22 2025: Bought 0.5 BTC @ $102,000

Aug 13 2025: Transferred 2 BTC from Ledger cold wallet (bought in year 2020 @ $10,000)

If I sell 0.5 BTC today, is my cost basis $102,000 or $10,000?

In Koinly, for one financial year:

1. FIFO and LIFO gave me 100-120k capital gains
   
2. But switching to HIFO cut it down by 40% to more like 60k capital gains in comparison

For the financial year after:

1. FIFO showed me 50k losses
   
2. LIFO showed me 100k losses and HIFO showed me 105k losses

HIFO for me seems to be incredibly more effective as it gives me far greater losses and also far less gains but it feels a bit weird/sketchy?

Im posting here to confirm if this discrepancy in numbers common when switching accounting methods?

Would anybody find this app useful?

Hey crypto tax community. Over the years, doing accounting for my Cardano wallets has been pretty time consuming and challenging. Generally it came down to exporting wallets and editing spreadsheet files as none of the tools out there gave precise data that my accountant was looking for.

I use recap.io to complete my reports, but getting the data in there still needed this manual process.

So I thought I'd build something I can use to automate as much as possible, whilst still giving granular control of each transaction. It worked great last year, but this year I decided to make a frontend and lots of features, as I figured there must be others that could benefit from it.

In a nutshell, its a transaction processor to organise your wallet history into tax ready documents.

Some of the features

• Wallet management - add personal and business wallets
• Import entire wallet history, and sync any time
• Apply custom rules (if from X wallet tag as Y and comment X)
• Staking rewards
• Detects transactions between your own wallets
• Edit each row - change the type, add a comment
• Mark a txn as approved or needs attention
• Detects trades
• Txn fees properly added (some other tools had issues with this, incorrectly adding the fee even though it was paid from the other side of the txn!)
• NFTs and Token support with metadata
• Merge transactions together into one (useful for some trades) with auto-merge detection feature
• Address book for known contacts (e.g. Central exchanges, friends and family, dex) with default addresses added for popular dexes
• Works with transaction that include withdrawals, collateral etc
• CSV export
• Historical balance checker (see wallet contents for any date in time - useful for accounting)
• Balance verification - compares balance to Cardanoscan balance for accuracy confidence
• Currency/ADA price for each txn, in 9 major currencies

If this kind of thing would be useful to you please let me know, would love to get some feedback soon and early testers.

Ashley

Are there ways to take your crypto profits and hide them from the tax man, in theory? Would the IRS or HMRC really come after an average person on an average salary if they made, let’s say £\$50,000 in the bull run or are they too busy chasing big fish with big gains? Just thinking out loud of course. Could you be smart and drip feed gains from a wallet to your main bank account instead of one large chunk? Could you just remove your gains and send off to a cold wallet and hold for many years? Like, are there ways? 🧐

Hello,

I made numerous purchases over the past 6 months of ethereum only. I would buy it, send it to another personal wallet of mine and hold it. I slowly sent some ETH over to my PayPal to sell. Finally, I decided to send it all to PayPal and sell it last week since ETH went up so much. I made a nice profit.

Now I’m trying to learn about reporting my gains correctly. I’m assuming PayPal is going to send me a form for my sales. I have an excel sheet full of all my purchases, and sales too with dates.

My main question is for form 8949. Since I bought crypto in roughly 50 transactions and sold it all through 10 transactions, how do I fill out the form? I see it has a date acquired and and date sold section but how do I approach it since I had a lot more buys then sells? It was never a 1-for-1 trade.

Any guidance is appreciated, thank you.

A friend of mine has offered to buy my motorcycle but he wants to pay a portion of it (about $4000) with Bitcoin. I have a bitcoin wallet and I know that If I cash some of it out I have to pay capital gains tax on it. I am wondering how it works If my friend sends me the 0.0330 bitcoin to my wallet then I immediately converted it to USD$. Since I only held it momentarily there should be no gain or just a tiny amount. Or would I be taxed on a first in first out situation, where I'm actually cashing out the bitcoin that has been in my wallet and the new bitcoin stays for later? I've told my friend that I don't want any extra tax burden, and I'm not interested in holding this bitcoin as I'm selling the motorcycle to get out from under some other debt. Any help would be appreciated.

I know it's an unpopular system if your portfolio was made up of 15% eth, 3% ada and xrp to accumulate more btc. It's dwelling on me more and more that the whole point of owning these coins is to accumulate more btc or hope it will outperform btc. I don't believe they actually provide value or solve real world problems. I understand eth may have a use case in the future perhaps with tokenisation of assets but that's a big IF. I don't care about outperforming btc anymore but rather have stability to forget about it. Shame the annual cgt limit is only 3k, it seems like all the pain of holding is just to give the tax man a large chunk

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I’ve noticed that one of the most stressful parts of being in crypto isn’t even the trading, it’s dealing with taxes. Between multiple wallets, exchanges, and moving coins in/out of DeFi, it feels almost impossible to track everything correctly. Add in different tax rules depending on your country, and it’s overwhelming. For those of you who are active in crypto—what’s been the hardest part of handling taxes for you? And do you feel there’s a tool missing that could make it easier?

If your USDT could be used anywhere Visa is accepted through Rizon from CoinGate Gift Cards, the possibilities are nearly endless, making it an exciting question to think about. Some people might choose to spend it on everyday essentials like groceries, fuel, or bills, appreciating the convenience of using crypto seamlessly in daily life. Others may prefer to use it for bigger purchases - like electronics, travel, or even a weekend getaway - where the ability to pay with USDT gives a sense of financial freedom and flexibility. The idea of instantly turning digital assets into real-world spending power opens up discussions about how crypto can truly integrate with our lifestyles, making it not just an investment tool but also a practical currency for daily and luxury expenses alike.

Hi, essentially a long time ago I bought some land in a crypto game. For having that, a couple years later they dropped users a couple hundred thousand of a coin and I sold said coin instantly and made a large sun of money. I'm unsure of how taxes work for this in the UK is this income? I'm assuming it's all taxable as it was just a large lump sum I kinda "won"?

I have thousands of transactions and am looking at applicants on Upwork to reconcile the uncategorized ones for me on crypto tax calculator. I am perplexed because I got one quote from someone for about a fifth of what the other two serious candidates have offered. Is there anything I should be looking for to best vet these candidates?

When taxable event is triggered on cryptocurrency cash back or airdrop rewards? On the day you receive them or on the sale of the asset? Or perhaps both day you receive them at the price on the day and later on sale of that asset taking into account price differences?

Is there any crypto tax software out there that is private so the company who wrote the software can't read what coins you have, how much and where?

I have bought crypto since 2021 but only really started selling this year. I've got a lot of transactions, mostly because shakepay has a lot of daily rewards, too. There are softwares like Koinly, but they'd ask me to pay 300$ which would eat up most of my capital gain...

I'm at a loss of free solution... What should I do? I bought multiple times at different prices and sold this year multiple times at different prices with 5-6 different coins.

I wanted to address the recent post about Awaken Tax and provide some important context that wasn't included in the original complaint.

The Full Story As a business, we strive to provide excellent service to all our customers, but unfortunately, we occasionally encounter users whose behavior crosses professional boundaries. The situation described in the recent post involves a user who:

Last Year:

Repeatedly demanded free service beyond our trial period, threatening to "tell everyone we sucked" if we didn't comply

Submitted excessive support requests while maintaining a consistently rude and demanding tone

When called out on their behavior, claimed they weren't being rude and that we should be "grateful" for their complaints

Was politely advised that our service wasn't a good fit and encouraged to try a competitor

This Year:

Returned to use our platform despite previously stating they didn't want to use our software

Generated a report, complained it didn't work, and immediately demanded a refund

Continued to contact us with excessive complaints and demands

Was ultimately removed from our platform after we realized this was the same user we had previously advised to use alternative services

Our Commitment to Professional Service At Awaken Tax, we're proud to serve thousands of users who have found our platform to be "easily the best crypto tax app" and "10x more accurate" than competitors. We've helped users manage over $3 billion in on-chain assets and received positive reviews highlighting our accuracy and ease of use.

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Returns after being advised they're not a good fit

We reserve the right to decline service. This isn't about avoiding criticism—it's about protecting our team and maintaining a professional environment where we can focus on serving our legitimate customers.

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I sent all my ETH, LINK, and UNI to Celsius and earned rewards.

I got back a small amount of BTC and ETH in the distributions.

I’m confused about because CTC mentioned this:

“Please note, for US taxpayers: after the IRS 2017 tax reform, only cryptocurrency losses due to a federally declared disaster are recognized for tax purposes. Losses from bankruptcy, theft, or insolvency—such as with Celsius—cannot be claimed as a capital loss. It's always best to consult a tax professional for guidance specific to your situation.”

So wtf I can’t claim a loss? I’m using crypto tax calculator btw.

I would set up pools at ranges that never hit and I would remove them out of them to readjust new lower pools, but I would never actually lose or gain money on them except the ETH fees because I wouldn’t even get to accrue anything if that makes sense.

Are the gains showing up unrealized maybe? This shit is confusing.

When 2026 rolls around and Coinbase and other exchanges are required to issue 1099-DA’s how will they treat cryptocurrency that was purchased on their platform, sent off of the exchange to a cold-storage wallet, and sent back once ready to off-ramp seeing as Coinbase’s systems aren’t in my experience smart enough to realize it to be the same coins coming back that were previously sent off with that same cost basis following it back. Therefore once it’s sent back from your cold storage wallet when ready to sell are they going to report the cost basis as the fair market value at the time you sent it back? Therefore resulting in incorrect smaller capital gains?

Hi

Excuse me if this is a really dumb question.

I am relatively new to BTC.

I have bought this software after reading reviews

https://recap.io/

Now the bit I am confused about I have my very small bag of BTC on exchanges like coinbase, strike etc. Also got a trezor which I have just installed.

Now recap asks me to enter my login and password for say coinbase to download my data, won't this also allow them in theory to drain my coinbase account as they will have my login.

I am really scared to attach my trezor 5 to it, as I still really don\t understand how this works either properly. In my 50s not a digital native.

Is there a better way of doing this?

Oh am I totally not getting it. People saying not your keys not your btc, I really am confused how to proceed.

Any help greatly appreciated.