Crypto tax rules used to feel vague. Not anymore. U.S. brokers now report your digital asset sales to the IRS on Form 1099-DA, and your books and tax returns need to match what they report. We make sure they do.
We reconcile every wallet and exchange into QuickBooks Online, Xero or your accounting software of choice, work out your real gains and losses under current rules, and give you and your tax CPA one consolidated, defensible picture.
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What’s changed
- Form 1099-DA. Custodial brokers and exchanges report gross proceeds for digital asset sales starting with 2025 transactions. For assets acquired in 2026 or later, they also report your cost basis.
- Wallet-by-wallet cost basis. Since January 1, 2025, cost basis has to be tracked separately for each wallet or exchange account rather than pooled across all your holdings (Rev. Proc. 2024-28).
- Staking and rewards. Staking rewards are generally taxable as ordinary income when you gain control of them (Rev. Rul. 2023-14).
- DeFi isn’t on the form. Congress repealed the rule that would have required DeFi platforms to issue 1099-DAs, so decentralized activity generally won’t be reported for you, but it still has to be reported by you.
- Fair value accounting. Under U.S. GAAP (ASU 2023-08), most crypto assets held by businesses are measured at fair value, with changes running through net income, for fiscal years beginning after December 15, 2024.
- The digital asset question. Form 1040 and business returns (Forms 1065, 1120 and 1120-S) ask whether you received, sold or exchanged digital assets. It has to be answered accurately every year.
Crypto bookkeeping services: how we help
- Connect exchanges and wallets such as Coinbase, Kraken, Ledger and Trezor to QuickBooks Online, Xero, NetSuite or your accounting system, automatically or manually
- Reconcile balances across every wallet and exchange, including transfers between your own accounts
- Calculate realized gains and losses with the correct cost basis, and reconcile your records to each Form 1099-DA
- Account properly for gas, miner and exchange fees, payment processing charges and staking income
- Prepare the gain and loss reports your tax CPA uses for Form 8949 and Schedule D
- Apply fair value accounting for businesses that hold crypto on the balance sheet
- Catch up prior years, reconstructing cost basis from exchange and wallet histories
Who we work with
Businesses that accept crypto as payment or hold it on their balance sheet, crypto-native startups, and business owners with active trading histories across multiple exchanges and wallets.
This page is general information, not tax advice for your situation. Digital asset rules continue to evolve, so talk to us about how they apply to you.
What will the 2027 Form 1099-DA show?
The forms brokers send in early 2027 cover 2026 sales. For the first time, they include cost basis, but only for “covered” assets: those acquired in 2026 or later in that same account. Crypto bought before 2026, or moved in from another exchange or a self-custody wallet, will usually show proceeds with no basis, and it is up to you to prove what you paid. That is why the wallet-by-wallet records matter: if your books don’t carry the basis, the gain on the form can look like 100% of the sale price.
How should a business account for crypto?
- Crypto received as payment is revenue at its fair market value in US dollars when you receive it, and that value becomes your cost basis.
- Crypto used to pay a vendor or contractor is treated as a sale of the crypto, so it can create a gain or loss as well as the expense.
- Crypto held on the balance sheet is measured at fair value at each month-end under ASU 2023-08, with the change in value in net income and the holdings shown separately from other intangible assets.
- Transfers between your own wallets are not taxable, but they need to be matched so they aren’t mistaken for sales or new income.
Most businesses with real crypto activity use a crypto subledger that syncs summarized entries to the general ledger. See our comparisons of crypto accounting software for QuickBooks and Xero. Behind on prior years? A fixed-fee catch-up project reconstructs cost basis from exchange and wallet histories.
Bitcoin bookkeeping for businesses
Bitcoin bookkeeping follows the same rules as any digital asset, with a few practical differences. Many businesses hold bitcoin in self-custody wallets or with custodians that don’t send a Form 1099-DA, so the cost basis has to come from your own records. Every purchase, payment received, transfer between wallets and network fee needs to be captured with its date and US dollar value. Bitcoin held on the balance sheet is measured at fair value at each month-end under ASU 2023-08, so your profit and loss moves with the price even when you don’t sell.
- Every wallet, exchange account and custodian listed, with balances reconciled monthly in bitcoin and in dollars
- Cost basis tracked wallet by wallet, including bitcoin bought before 2026 that brokers won’t report
- Bitcoin payments from customers recorded as revenue at the dollar value when received
- Network fees recorded correctly for transfers, payments and sales
- Bitcoin accounting software that syncs summarized entries to QuickBooks Online, Xero or NetSuite
Frequently asked questions
Will my exchange report my crypto sales to the IRS?
If you sell through a U.S. custodial broker or exchange, yes. Starting with 2025 transactions, brokers report gross proceeds on Form 1099-DA, and for assets acquired in 2026 or later they also report cost basis.
Do I have to report crypto if I didn’t get a Form 1099-DA?
Yes. Taxable digital asset transactions have to be reported whether or not you receive a form, including activity on decentralized platforms and in self-custody wallets.
Are staking rewards taxable?
Generally, yes. Under Rev. Rul. 2023-14, staking rewards are ordinary income when you gain control of them, and selling them later can create a separate gain or loss.
Why does my 1099-DA show no cost basis?
Brokers only report basis for covered assets, generally those acquired in 2026 or later in the same account. For older purchases or crypto transferred in, the form shows proceeds only, and your own records have to supply the basis.
Is moving crypto between my own wallets taxable?
No. Transfers between wallets or exchange accounts you own are not sales. They still need to be recorded and matched in your books, and network fees paid on the transfer need their own treatment.
Which cost basis method should I use for crypto?
First in, first out is the default. You can use specific identification if you identify the units sold at the time of the sale with adequate records, applied wallet by wallet since 2025. Your tax CPA confirms the method for your return.
Does the wash sale rule apply to crypto?
Under current federal law, the wash sale rule covers stock and securities, and digital assets are treated as property, so it generally does not apply to crypto. Congress has proposed changing this, so confirm the rule for the year you sell.
How do I account for crypto my business accepts as payment?
Record revenue at the US dollar fair market value on the day you receive it. If you convert it to dollars right away through a processor, the gain or loss is usually small; if you hold it, it is measured at fair value at each month-end.
Can you clean up several years of crypto records?
Yes. We pull exchange and wallet histories, rebuild cost basis by wallet, reconcile balances, and produce gain and loss reports for each year, so your tax CPA can amend or file with confidence.
Do you prepare crypto tax returns?
No. We keep the books and gain and loss reports accurate and reconciled to your 1099-DAs, and work alongside your tax CPA, who prepares and files the returns.
What is the best bitcoin accounting software for a business?
It depends on your ledger and volume. Crypto subledgers such as Bitwave, Cryptio and Cryptoworth track bitcoin cost basis and fair value and sync to QuickBooks Online, Xero or NetSuite. Our crypto accounting software comparison covers pricing and features.
Get your crypto records in order
Whether you’re current or years behind, we’ll get your books and your 1099-DAs telling the same story.