Tax Loss Harvesting
Using realized losses to offset gains within applicable tax rules.
Bitcoin Taxes & Estate Planning
Record-Keeping for Taxes
Documents and data to track so you can report Bitcoin activity accurately.
Overview
Maintain a log of acquisitions, disposals, fees, and fair-market values in your local currency at the time of each event. Exchange CSV exports, wallet labels, and block-explorer transaction IDs all support reconstruction at year-end.
The more active your trading, the more structured your system should be. Tax software or professional help often pays for itself when activity spans multiple wallets and years.
Building a transaction log
Capture date, type, quantity, fiat value, fees, platform, and addresses. Exchange CSVs are a starting point—on-chain moves matter too.
Consistent wallet labeling prevents double counting when funds move between your accounts.
Cost basis methods
Jurisdictions allow FIFO, specific identification, or average cost—often requiring consistency once chosen.
Transfers between wallets you own typically do not reset basis but should be recorded to prove continuity.
Tools and workflows
Crypto tax software imports APIs and addresses. Review automated classifications manually.
Active traders may need quarterly estimates. Set reminders aligned with local filing obligations.
