Crypto tax reporting for Brooklyn investors

Comprehensive tax preparation for Brooklyn residents

We ingest reports from major exchanges, wallets, and DeFi platforms to build a consolidated transaction ledger. Our CPAs work with exchange CSV files, API exports, and blockchain analysis tools to capture all cryptocurrency transactions. We reconcile transactions across multiple exchanges and wallets to ensure nothing is missed. We handle complex DeFi transactions including liquidity pools, staking, yield farming, and NFT transactions. We also coordinate with third-party tools when needed to validate wallet histories and ensure complete reporting.

Tax lots are matched using FIFO or specific identification and gains are reconciled with 1099 statements when available. We use FIFO (first-in-first-out) as the default method unless you elect specific identification. We match every sale to its corresponding purchase and calculate gain or loss for each transaction. We reconcile our calculations with Form 1099-B when exchanges provide them, and we create our own schedules when exchanges don't issue 1099s. We also handle wash sale rules and ensure proper reporting.

We guide you through New York State and NYC reporting obligations, including questions on resident returns. We ensure all cryptocurrency transactions are properly reported on your federal return using Form 8949 and Schedule D. We coordinate New York State reporting requirements and ensure NYC reporting when applicable. We also handle foreign account reporting requirements (FBAR and Form 8938) when cryptocurrency holdings meet threshold requirements.

We provide detailed gain and loss summaries showing every transaction and its tax impact. We prepare comprehensive schedules showing short-term and long-term gains separately. We also coordinate with your overall tax planning to optimize cryptocurrency tax strategies including timing of sales and loss harvesting.