Question 1

Is my cryptocurrency usage taxable?

Accepted Answer

Yes, in most jurisdictions, disposing of cryptocurrency—including selling for fiat, trading for other crypto, or using it to pay for goods and services—is a taxable event.

Question 2

Which accounting method should I use?

Accepted Answer

This depends on your local tax laws. FIFO (First-In, First-Out) is standard in many regions, but some jurisdictions allow HIFO (Highest-In, First-Out), which can help reduce your current tax burden by selling the most expensive assets first.

Question 3

Does the calculator handle DeFi and Staking?

Accepted Answer

Yes, our tool is built to categorize various transaction types, including staking rewards, liquidity pool distributions, and lending interest, which are often taxed as income rather than capital gains.

Cryptocurrency Tax Calculator