Crypto tax history: how to prepare your records
You prepare a crypto tax history by putting every exchange, wallet, and DeFi transaction into one list, then reporting gains and income to the IRS.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Put exchange, wallet, and DeFi transactions in one list.
- Sales, swaps, and spends can create gains or losses.
- Keep records for the IRS audit window.
The IRS treats digital assets as property, so transactions are reportable.
Which crypto transactions are taxable?
Export every exchange, wallet, and DeFi transaction into one list. Then separate taxable events from nontaxable ones. Sales, swaps, and crypto payments are usually taxable. Transfers between your own addresses are not taxable, and buying with US dollars and holding is not taxable either.
How do you prepare your crypto tax history?
Work through each taxable event. For a sale, swap, or spend, find the cost basis and proceeds, then calculate the gain or loss. Report capital results on the IRS forms for digital assets and income on the IRS income schedules.
- 1Find cost basisFor bought crypto, use what you paid. For staking, mining, or airdrop crypto, use the fair market value when received.
- 2Find proceedsUse the fair market value in US dollars on the event date.
- 3Calculate gain or lossSubtract cost basis from proceeds. Report the result on the IRS forms for digital assets, even with no gain or loss.
- 4Report incomePut staking, mining, and airdrop income on the IRS income schedules when received.
What should you do after filing?
Keep records and backups after filing. The IRS usually has three years after the due date or filing date to audit a return. Store records and backups in two secure places.
Frequently asked questions
Ask for records if it operates, or rebuild from bank statements and emails.
No. Buying with US dollars and holding is not taxable, but selling, swapping, or spending can create a gain.
A transfer between addresses you control is not a disposal. Keep the original basis.
Yes. It can import data and calculate gains, but check the results.
