Hub / Pillar

Crypto Tax Education Guide

This hub gives you a practical learning path to understand how crypto tax calculations and reporting work before filing. Use it to move from taxable-event basics to cost basis, gains and losses, and filing preparation.

This guide is educational and does not constitute tax advice.

How Crypto Taxes Work

Start with a clear map of what counts as taxable income versus capital gains events.
Separate transaction records by event type before any calculation.
Keep your process focused on education and DIY preparation, not software selection.

Taxable Events

Track buys, sells, swaps, and disposal events with timestamps and values.
Identify special cases that often create mistakes, such as trading-to-trading conversions.
Use a consistent event log before moving into gain and loss math.

Cost Basis and Methods

Define lot-level cost basis with complete purchase data and fees.
Understand method selection such as FIFO vs HIFO and its impact on reported outcomes.
Apply one documented method consistently across the same jurisdictional scope.

Gains and Losses

Calculate realized gains and losses from disposal events after cost basis assignment.
Review loss-harvesting logic carefully to avoid timing and classification errors.
Keep calculations auditable with assumptions and source records documented.

Reporting and Filing Preparation

Prepare a filing-ready summary after validating totals against source transactions.
Include support files and notes so calculations can be reviewed later.
Use reporting checklists to reduce omissions before submission.