Crypto Tax Essentials
A grounded route through how crypto taxation generally works, from taxable events through to a real jurisdiction's own rules.
Who it's for: People who want to understand crypto tax concepts and recordkeeping before filing -- not personalized or jurisdiction-specific tax advice.
14 steps · ~43 min of guided reading, plus research and tool steps
What you'll learn
- • Explain what generally counts as a taxable event in crypto, and what usually doesn't.
- • Understand cost basis and why the accounting method you use changes a reported gain.
- • Keep the kind of records that make accurate reporting possible later, not after the fact.
- • Explain why DeFi activity and NFT transactions raise harder reporting questions than a simple trade.
- • Use Kaavon's tax calculators to understand the mechanics, and see how one real jurisdiction documents its own rules.
- 1Guide
6 min read
Crypto Taxes: The Basics
Start with the general, educational concepts behind crypto taxation.
- 2Guide
5 min read
Understanding Taxable Events in Crypto
Learn the kinds of activity commonly treated as taxable events.
- 3Guide
6 min read
Crypto Cost Basis and Accounting Methods
Understand cost basis and why the accounting method you choose changes a reported gain.
- 4Tool
Weighted Average Cost Basis Calculator
Practice calculating a blended cost basis across multiple purchase lots.
- 5Guide
5 min read
How Crypto-to-Crypto Trades Are Generally Treated
See why trading one crypto asset for another can itself be a taxable event.
- 6Tool
Crypto-to-Crypto Trade Tax Impact Calculator
Practice estimating the tax impact of a crypto-to-crypto trade.
- 7Guide
5 min read
Recordkeeping for Crypto Taxes
Learn what's generally useful to track before you need it, not after.
- 8Tool
Capital Gains Holding Period Calculator
Practice applying a short-term or long-term rate based on how long an asset was held.
- 9Guide
5 min read
Understanding Crypto Tax Loss Harvesting
Understand a common strategy for realizing losses -- and its real limits.
- 10Guide
5 min read
How DeFi Activity Complicates Tax Reporting
See why DeFi transactions are often harder to track and report than a simple trade.
- 11Guide
6 min read
How Are NFTs Taxed?
Learn the separate events that commonly carry tax implications for NFTs specifically.
- 12Tool
Effective Tax Rate Calculator
Practice calculating an overall effective tax rate from total tax paid and total taxable gain.
- 13Tool
Quarterly Estimated Tax Calculator
Practice dividing an annual estimated tax owed into quarterly payments.
- 14Tax Guide
United States Crypto Tax Guide
Finish by seeing how one real jurisdiction documents its own rules, sourced directly from its tax authority.