Celsius investors have encountered a rollercoaster of events that not only impacted their portfolios but also introduced complexity to their tax filings. From Celsius's closure and bankruptcy filing in 2022 to the indictment of Alex Mashinsky in early 2023 and subsequent payouts in 2024, understanding how to report these incidents on tax returns has become crucial. This article aims to simplify these complexities, offering a clear pathway for investors to understand their tax obligations. Understanding the Tax Implications of Celsius's Events The sequence of events surrounding Celsius ha ..read more

Solana, unlike Ethereum, does not need to rely on Layer 2 solutions. Its story begins with Anatoly Yakovenko, a software developer who sought to address the scalability limitations faced by existing blockchains. In November 2017, Anatoly published a groundbreaking whitepaper introducing Proof of History (PoH). This novel technique allowed computers that didn’t inherently trust each other to agree on time, paving the way for a highly efficient network. Unlike Bitcoin and Ethereum, which struggled to handle more than 15 transactions per second, Solana aimed to be thousands of times faster right ..read more

Our last article explored Bitcoin, how it works and the Bitcoin halving. Bitcoin was the OG among all cryptocurrencies, but Ethereum, led by Vitalik Buterin, took crypto assets to the next level by integrating smart contract functionality into the blockchain. These smart contracts allowed for many more things that we know today as decentralized finance (DeFi), such as swapping, lending, and staking directly on the blockchain without needing a central exchange. As of today, Ethereum remains the dominant smart contract platform by market capitalization, but Solana is quickly catching up, and it ..read more

 Regardless of which blockchain you choose to use for DeFi, you must remember that every transaction can have tax consequences. Investors must be cognizant of the tax implications as the IRS is actively working to scale its enforcement on centralized exchanges and DeFi. Ignoring your DeFi transactions when it comes to tax reporting could severely handicap your investment strategy.   We covered the main principles of crypto taxation in our blog post from last week. These same basic principles apply not just to Bitcoin but also to Ethereum, Solana, and every other cryptocurrency. There ..read more

As of this publication, the Bitcoin halving is only 14 days away, where each block reward for successfully mining Bitcoin will be cut down to 3.125 BTC from the current 6.25 per block. This event is causing a lot of excitement within the industry and crypto investors alike as Bitcoin continues to become more scarce.    But why exactly is this such a big deal? How, if at all, will this impact your strategy to be compliant with tax authorities, such as the IRS? In this article, we will look at Bitcoin, how it works, and how the halving will affect its supply. We will also explain all t ..read more

During 2021, the United States, along with many other nations worldwide, saw historic interest rate increases, going from 0.25% in 2021 to the current 5.5% rate since July 2023. This has had a cascading effect on all interest rates, from consumer credit cards to auto loans and mortgages. Among many other interest rates impacted by the Federal Reserve rate increases are the interest rates charged by the Internal Revenue Service (IRS), going from 3% for 2021 to 8% for 2024. For any crypto investors, this means that making sure to make tax payments on time is even more critical than ever before ..read more

Following the SEC’s approval of Bitcoin ETFs this past January, the finance sector saw the arrival of 11 new Bitcoin ETFs. Bitcoin ETFs represent a significant step towards making investing in Bitcoin more accessible to a wide range of investors, from institutional entities to 401(k) plans and traditional investors. These ETFs have come at a time when Bitcoin approaches the halving when rewards for each block of mined Bitcoin will be decreased to 3.125 BTC from the current 6.25 BTC amount. This event will solidify Bitcoin as the most scarce asset in the world - true digital gold. These funds s ..read more

As Bitcoin's price approaches unprecedented highs, nearly breaking the $70,000 mark, the mood among crypto investors ranges from elated to strategic. Many are basking in the glow of substantial crypto gains, while others are wisely capitalizing on the recent market upswing. However, amid this financial euphoria, there's a crucial consideration for every American taxpayer involved in cryptocurrency: the obligation to report any realized gains on your federal income tax returns to the IRS. Those under the impression that their crypto profits might fly under the IRS radar should reconsider. Delay ..read more

Introduction In July 2022, Celsius, a prominent name in the cryptocurrency sector, filed for bankruptcy protection, marking a significant event in the crypto world. This move left numerous investors in a state of uncertainty regarding their funds and investments. Fast forward to the recent development: the bankruptcy court has now confirmed a reorganization plan, effectively coming into force on January 31, 2024. A key component of this plan is the formation of Ionic Digital Incorporated, a new Bitcoin mining entity set to play a pivotal role in the restructuring process. This development rais ..read more

Dealing with crypto taxes can feel like a maze when you consider the plethora of exchanges, blockchains, dapps, and unclear guidance on certain transaction types by the IRS. To make things more complicated, taxpayers are left to calculate their gains and losses and figure out how to report them. This is why many cryptocurrency tax software tools have emerged: to fill a gap and help taxpayers calculate and report their crypto taxes. But with so many tools, how can you tell the contenders from the pretenders? Enter CoinTracker – a US-based crypto tax software tool that has become one of the majo ..read more