- Every swap, bridge, or liquidity-pool deposit can be taxable—don’t trust exchange 1099s alone.
- A crypto-fluent CPA reconstructs cost basis, files FBAR/FATCA for offshore exchanges, and guides DeFi staking income.
- One audit letter can erase your gains—findcrypto-savvy accountants on Sam’s List
Why Crypto Taxes Are Brutal
•IRS Notice 2014-21treats crypto as property—every disposal is taxable.
• Bridging or wrapping tokens often counts as a trade if the tokenidentifierchanges.
• Staking rewards are ordinary income at date-of-receipt (Rev. Rul. 2023-14).
• TheChainalysis 2024 Crypto Tax Gapreport says 56 % of U.S. investors underreported at least one taxable event.
Five Must-Have Skills in a Crypto CPA
Cost-Basis Reconstruction
FIFO vs. HIFO can swing AGI by thousands; your CPA must import data from Koinly, CoinLedger, or raw CSVs.
Hypothetical example: an airdrop hunter trimmed capital gains $32K by switching to HIFO lot ID after a Binance delisting.
DeFi Lending & Liquidity-Pool Classification
IRS hasn’t ruled, so conservative CPAs treat LP deposits as disposals; aggressive ones analogize to Rev. Rul. 2019-24.
Example: Your accountant should document the stance in a memo—protection if audited.
NFT Minting & Creator Royalties
Mint FMV is the basis; secondary royalties are ordinary income.
Example: Your CPA should track IPFS IDs and marketplace 1099-Ks to reconcile creator earnings.
International Exchange FBAR/FATCA Compliance
Offshore exchange balances >$10K trigger FBAR (FinCEN Form 114).
Example: Ignoring FBAR carries $10K+ penalties; acrypto CPAincludes exchange screenshots and wallet attestations.
Loss Harvesting & Pending Wash-Sale Rules
Crypto wash sales aren’t disallowedyet; harvest responsibly before Congress closes the gap.
Example: Proposed Build Back Better Act targeted digital assets—expect revival.