Crypto taxes don’t have to be a nightmare! 🎃 Pumpkin. simplifies your filings, ensuring compliance with zero hassle. From tracking trades to minimizing liabilities, we’ve got your back. Let us turn your crypto tax fears into treats this season!
Cryptocurrency trading can offer incredible opportunities, but tax season often brings a wave of challenges for crypto investors. With complex and evolving tax laws, understanding how to accurately report digital asset transactions is essential. At Pumpkin, we’re here to help you navigate these changes smoothly and maximize your tax benefits.
Starting in 2025, custodial brokers will be required to report sales and exchanges of digital assets to the IRS using the newly introduced Form 1099-DA. This form will detail gross proceeds for the year 2025. Beginning in 2026, it will also include information on cost basis, as well as gains and losses from digital asset transactions. This enhanced reporting aims to align crypto tax compliance with that of traditional securities, making it essential for traders to stay informed and organized.
The IRS released new regulations requiring taxpayers to manage crypto cost basis on a wallet-by-wallet basis starting January 1, 2025. A transitional safe harbor method was also introduced, allowing clients to reassign cost basis across wallets and accounts prior to 2025. This change means that, moving forward, each wallet or account must be tracked individually for cost basis, a shift from the prior universal method.
The IRS now requires custodial platforms in the U.S. to maintain accurate Taxpayer Identification Numbers (TINs) on file. If your TIN is missing or does not match IRS records, you could face transaction delays and a 24% backup withholding tax on reportable income. To avoid these costly disruptions, ensure your documentation is complete and up to date.
Starting in 2024, digital asset brokers are required to report miscellaneous income, such as staking rewards and bonuses exceeding $600, on Form 1099-MISC. While reporting capital gains and losses will not be mandatory until 2026, clients can use transaction history reports provided by their platforms to independently calculate gains or losses.
At Pumpkin, we keep a watchful eye on evolving IRS crypto tax regulations to offer you the most accurate, compliant, and cost-effective filing services. Here’s how we help you navigate crypto tax reporting:
From trading and staking to airdrops, we handle the calculations so you can file with confidence.
We prepare and file all necessary forms, including the new 1099-DA, Form 1099-MISC, and other essential documents.
Throughout the year, our team is available to answer questions, offering year-round peace of mind.
With our specialized expertise in crypto taxes, advanced technology solutions, and commitment to customer service, Pumpkin. offers crypto investors a clear advantage. We simplify complex tax requirements, maximize savings, and help you stay compliant—minimizing the risk of audits and penalties.
Reach out today and discover how we can streamline your financial processes with expert guidance.
Book a consultation at your convenience to discuss your specific financial needs and goals.
Engage with our seasoned professionals who will tailor solutions to optimize your financial operations.
Let us handle your taxes, bookkeeping, and payroll so you can focus on scaling your business effectively
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Crypto tax reporting ensures compliance with IRS regulations, avoiding penalties and maximizing tax savings.
Starting 2025, Form 1099-DA will report crypto transactions to the IRS, aligning with traditional securities reporting.
From 2025, each wallet must track its cost basis. Pumpkin Tax Co. ensures accurate tracking and compliance.
Yes, staking rewards over $600 must be reported. We calculate and file these for you seamlessly.
We handle calculations, prepare forms, and provide expert guidance to make crypto tax filing
Contact us today for a free consultation and see how Pumpkin. can make this tax season less frightening. Download our Crypto Tax Guide or Learn More About Our Crypto Tax Services to get started.
