US IRS tax reporting for cryptocurrencies


Jeez, I made many trades through out the year mostly tiny one’s and then hodling mostly in many alts till the alts appreciated and then moved it back to btc and ETH. How am I to deal with ICO’s?
Looks like to pay taxes I have to figure out every transaction and come up with the money to pay for it even though all my crypto investments (every cent of it is still in crypto never did a $$ withdrawal)

Where are the privacy coins when you need them?? fk!!


I just ask because I’m in ATL and I started investing in crypto at the beginning of the year I was able to build a nice little portfolio,bought and traded,got in on some ICO’s, I believe this new year things is going to be a little different with the new tax law and BTC becoming more and more popular I know I’m gonna need a CPA who is very active in the crypto community… I can use all the help and advice I can get.


Hi Peter,

I assume earning Alt is the same as earning BitCoin, a taxable event?


Earning bitcoin is taxable.


Gotcha- understood. It is good to have a CPA that is familiar with crypto. I am also an investor - I have over 15 coins combined (long term HODLer) so I understand most of what other people are going through when they want to discuss their coins, taxes, and etc.


Yes. It’s taxable on the date you receive it – which is supposed to be the fork date.

This is a CPA talking and I’m still trying to figure out how to receive my B2X (ha) from the alleged fork last week and I don’t even know if it is yet available. So is it taxable to me? Right this minute I think I have a valid argument for transferring it to the year when I actually figure out how to receive it. The prior forks, especially the BTC/ BCC, were almost automatic.

Has anyone reading this yet received their B2X??


Yes Rebecca I started with BTC and spread my portfolio to about 18 other coins. The Conversation about Taxes have been one that me and some of the people I have help get into crypto have been asking, so I think is an unavoidable topic so I need to really do my homework. I really believe in this new technology, not just because of the financial freedom that it can potentially come out of it but because it is very self motivating and active environment where does who are involved are doing everything in there power to help it move forward…


Ok well hit me any time-


Here is yet another question I have for you smart people. Lets say I bought ETH when it was $100 and the past months I’ve added to the bag with $200 and $300 ETH. Now that I have gains and I want to take some of the ETH and move it to another coin, how does one go about reporting gains? Is it gains from the ETH at $100, $300 or the average cost of my current ETH holdings which is lets say $200? IE. Can i report the gains by techinically sending the “$300” ethereum?


Thanks Peter. Those forks confuse me too. I have two ways to look at them:

  1. You literally doubled your money
  2. As soon as you spend on one blockchain, you debit from the other. That is, you have a “presence” on both chains, but the same amount of money overall.

@peter or @john - do you know what the truth is here? Is there a forum member to @-sign that would?


On this transaction you PROBABLY have options you allude to - Do I want to use FIFO , LIFO or weighted average cost on my tax return??

The answer really lies in what you have done in past years with your crypto gain/ loss reporting.

  • If this is your first year reporting crypto gains/ losses you can use any method you want this year.
  • If you used any one of the methods mentioned above (or something else) in prior years you really should continue to use that method. It’s called consistency. The IRS likes that and if you become really successful at this in later years your accountant will be really appreciative of your foresight.

Let me know if that does not completely answer your question.


Hi Peter,

Happy New Year!

I am also waiting for my B2X coins from the fork on 12/28/2017.

Trezor hasn’t announced any support for B2X. Hopefully it is coming in the future.


I have heard that if you buy or sell before 12/31/2017 and not cash out FIAT, you dont need to pay tax. From 01/01/18, if you buy and sell, you need to pay tax even you dont cash out. Am I correct?


So confused, buy ETH and holding, it increases 10%. I am still holding, dont exchange another crypto yet. Why I need to pay tax?


If they tax cryptocurrency then why dont they accept cryptocurrency as tax payment. Send them some Dogecoin. and its if price rise it means we paid more tax,.


Tommy, I’ve always advised group members to think of all of their transactions (except putting fiat into crypto or moving balances from one custodian to another) as taxable events.


Because you cannot pay your taxes in gold/silver or any other property asset which is what crytpo currencies are. They are not a currency with regards to taxes. I think it was Sweden that is looking or is accepting BTC for tax payments which in the end will make it much easier to get paid in crypto’s.


Good point there @winter84


@nekko I believe the keyword here is currency, but the US Gov. is looking at it from the assets point with the currency not yet been one for the US til is exchange to fiat…


But will it start on 01/1/18? so before 01/01/18, we didn’t need to pay tax if we didn’t cash out?