Look, nobody gets into crypto thinking about taxes. You're here to make money, not to deal with the IRS. But here's the thing - the IRS doesn't care about your intentions. They want their cut.

The Golden Rule of Crypto Taxes

Every time you sell, trade, or dispose of crypto and get something in return - that's a taxable event.

The IRS treats cryptocurrency as property, not currency. Think of it like stocks or real estate. When you sell for more than you bought, that's capital gains. When you sell for less, that's a capital loss.

What's NOT Taxable

Good news - not everything triggers a tax event:

• Buying crypto with money - Just setting up cost basis
• Moving between your own wallets - Transferring isn't selling
• Holding - Just sitting there isn't taxable
• Gifting - (Well, gift tax exists, but different story)

The Numbers You Need to Track

For every single transaction, you must know:

1. What you bought - Token, amount, date
2. How much you paid - In USD at that moment
3. What you sold it for - USD value when you sold
4. When you sold it - Date matters for short/long term

Short-Term vs Long-Term: Why It Matters

Hold for more than a year = lower taxes. It's that simple.

What Happens If You Don't Report?

Short answer: Don't.

The IRS is getting serious about crypto. Form 1099-DA is now required for crypto brokers, which means they're going to know about your transactions whether you report them or not. Not reporting = higher penalties, interest, and potentially criminal charges.

How Arthur Labs Helps

We built this tool because tracking all this manually is a nightmare. Just drop in your wallet address and we'll:

• Scan your transactions across Ethereum, Solana, Bitcoin
• Calculate cost basis using FIFO (or your preferred method)
• Generate reports ready for your tax pro
• Create IRS 1099-DA ready documents