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There is no one clear rule that says how every single one of your cryptocurrency transactions should be taxed. Instead, the IRS periodically releases guidelines to help you understand your obligations.
Our Head of Tax, Nick Waytula, reviewed these guidelines to help produce this comprehensive guide to crypto taxes in the US, alongside our expert writing team.
Is there a free version?
Yes, CoinLedger offers a free version with portfolio tracking and unlimited transactions. To gain access to any reports, you’ll need to upgrade to a paid plan.
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Professional Consultation Plans
Is there a free version?
Yes, you can import your crypto transactions for free. However, to view, download, or access reports, you need to upgrade to a paid plan.
Is there a free version?
Yes. Koinly provides a limited free version that allows you to track your portfolios. For access to any reports, you’ll need to upgrade to a paid plan.
Is there a free version?
No free version available.
Summ also offers a 30-day, 100% money-back guarantee. If you’re not satisfied, you can receive a full refund by contacting the support team.
Yes, Summ is free to use instantly when you sign up, allowing you to gain a full picture of your crypto portfolio, with support for up to 100,000 transactions. Take advantage of the smart suggestion and auto-categorization engine, portfolio tracking, unlimited integrations, DeFi and NFT support.
To access the reports, the tax loss harvesting tool and priority support, you will need to upgrade to the appropriate paid plan.
In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.
The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.
In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.
If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.
You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.
Digital assets are no longer a fringe issue in matrimonial law. With billions of dollars now stored in wallets and exchanges, clear, defensible accounting records often determine whether a settlement is swift and equitable—or contentious and costly.
As part of the strategic partnership with Summ, Mark DiMichael from Citrin Cooperman has prepared this educational article to break down crypto matters in divorce.
Digital assets are no longer a fringe issue in matrimonial law. With billions of dollars now stored in wallets and exchanges, clear, defensible accounting records often determine whether a settlement is swift and equitable—or contentious and costly. Robust records could help resolve three core questions that judges and attorneys routinely ask:
Well-organized data from tools such as Summ can assist with this process.
When one spouse must sell cryptocurrency to raise cash for an equitable distribution payment, every disposition triggers a capital gain or loss.
Example | BTC Basis | FMV on Sale | Realized Gain
Purchased June 2020 | $10,000 | $60,000 | $50,000
Purchased Feb 2024 | $55,000 | $60,000 | $5,000
Those gains flow directly onto the seller’s Form 8949 and Schedule D, creating taxable events, reducing the net funds available for the parties to a divorce. A clear transaction history lets advisors model after-tax proceeds so both parties can negotiate with eyes wide open.
Under §1041 of the Internal Revenue Code, property transfers “incident to divorce” are non-recognition events. That means:
Why it matters: When Spouse B eventually sells, they—not Spouse A—will owe tax on the $55,000 embedded gain. Good records prevent potential tax surprises years later.
Practical tip: Attach a Basis Allocation Schedule to the Stipulation of Settlement so both spouses (and the IRS) have written proof of each lot’s cost basis and acquisition date.
Dividing a marital estate dollar-for-dollar can be misleading:
Asset | Current Value | Unrealized Gain | Effective After-Tax Value*
Bitcoin (held >12 mo) | $100,000 | $50,000 | $100,000 − ($50,000 × 20 %) = $90,000
Cash | $100,000 | - | $100,000
*Assumes a 20% long-term federal capital-gains rate and no state tax. State and Net Investment Income Tax can push the rate higher.
A precise lot-by-lot report from Summ (or similar program) lets divorcing spouses, and their attorneys understand the tax-effect of each asset.
Some spouses will downplay or deny historical crypto activity, and I’m often engaged by non-monied spouses that suspect cryptocurrency has gone missing. Any individual selling or spending their cryptocurrency are required to report their capital gains/losses and are required to keep records for support.
Those records can be kept in any form but often require sophisticated accounting programs to consolidate transaction records that can occur in multiple wallets and multiple exchanges. Tracking transactions in Microsoft Excel becomes extraordinarily burdensome when transactions include transfers between wallets and exchanges that commingle coins purchased at different prices and at different points in time. Individuals with dozens of wallets, dozens of exchanges require programs such as Summ to get the job done.
In a divorce litigation matter, it is always advisable to request those records. A court may draw a negative inference when records are missing or contradictory.
In some cases, the crypto-savvy spouse is happy to be transparent, but the non-monied spouse remains wary. Granting read-only access to a live accounting platform can calm nerves and shorten discovery. In several divorce litigation matters, I have been able to view a spouse’s transaction history with data pulled live from the spouses’ exchange and wallet accounts via API.
Investigators should be aware, however, cryptocurrency accounting programs do allow individuals to change, add, and remove transactions manually. Therefore, I will generally perform some additional steps to investigate and validate the transactions/balances in more contentious divorce litigation matters.
Cryptocurrency doesn’t have to complicate a divorce. Accurate, software-driven records can:
If you or your ex-spouse hold digital assets, enlist a qualified forensic accountant early and leverage tools like Summ to build a rock-solid evidentiary foundation.
Contact Mark DiMichael or another member of Citrin Cooperman’s Digital Assets Practice to further discuss.
Summ simplifies crypto tax reporting across 3,500+ wallets, exchanges, and blockchains. It generates precise, accountant-endorsed reports for a wide range of crypto activity, including DeFi and on-chain transactions, helping users stay fully compliant.
Mark DiMichael, CPA/ABV, CFF, CFE, CCFI is a forensic accountant specializing in divorce matters; Citrin Cooperman Digital Asset Practice Leader.
The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.
Compare the best platforms for managing Form 1099-DA reporting, calculating cost basis, and reconciling exchange data with your actual transaction history.
Coinbase Prime has started issuing Form 1099-DA to U.S. crypto traders for the first time. This quick guide explains what the new 1099-DA means, why you received it, what's missing from the form, and the exact steps you should take next to avoid overpaying on crypto tax.
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Without accurate cost basis information, your crypto tax calculations will be incorrect, which could cost you thousands in overpayment.
Import your transactions and generate a free report preview.
Blog
15 February 2026
X
Min read
Digital assets are no longer a fringe issue in matrimonial law. With billions of dollars now stored in wallets and exchanges, clear, defensible accounting records often determine whether a settlement is swift and equitable—or contentious and costly.
Mark DiMichael
This tax guide is regularly updated: Last Update
....
February
18
2026
As part of the strategic partnership with Summ, Mark DiMichael from Citrin Cooperman has prepared this educational article to break down crypto matters in divorce.
Digital assets are no longer a fringe issue in matrimonial law. With billions of dollars now stored in wallets and exchanges, clear, defensible accounting records often determine whether a settlement is swift and equitable—or contentious and costly. Robust records could help resolve three core questions that judges and attorneys routinely ask:
Well-organized data from tools such as Summ can assist with this process.
When one spouse must sell cryptocurrency to raise cash for an equitable distribution payment, every disposition triggers a capital gain or loss.
Example | BTC Basis | FMV on Sale | Realized Gain
Purchased June 2020 | $10,000 | $60,000 | $50,000
Purchased Feb 2024 | $55,000 | $60,000 | $5,000
Those gains flow directly onto the seller’s Form 8949 and Schedule D, creating taxable events, reducing the net funds available for the parties to a divorce. A clear transaction history lets advisors model after-tax proceeds so both parties can negotiate with eyes wide open.
Under §1041 of the Internal Revenue Code, property transfers “incident to divorce” are non-recognition events. That means:
Why it matters: When Spouse B eventually sells, they—not Spouse A—will owe tax on the $55,000 embedded gain. Good records prevent potential tax surprises years later.
Practical tip: Attach a Basis Allocation Schedule to the Stipulation of Settlement so both spouses (and the IRS) have written proof of each lot’s cost basis and acquisition date.
Dividing a marital estate dollar-for-dollar can be misleading:
Asset | Current Value | Unrealized Gain | Effective After-Tax Value*
Bitcoin (held >12 mo) | $100,000 | $50,000 | $100,000 − ($50,000 × 20 %) = $90,000
Cash | $100,000 | - | $100,000
*Assumes a 20% long-term federal capital-gains rate and no state tax. State and Net Investment Income Tax can push the rate higher.
A precise lot-by-lot report from Summ (or similar program) lets divorcing spouses, and their attorneys understand the tax-effect of each asset.
Some spouses will downplay or deny historical crypto activity, and I’m often engaged by non-monied spouses that suspect cryptocurrency has gone missing. Any individual selling or spending their cryptocurrency are required to report their capital gains/losses and are required to keep records for support.
Those records can be kept in any form but often require sophisticated accounting programs to consolidate transaction records that can occur in multiple wallets and multiple exchanges. Tracking transactions in Microsoft Excel becomes extraordinarily burdensome when transactions include transfers between wallets and exchanges that commingle coins purchased at different prices and at different points in time. Individuals with dozens of wallets, dozens of exchanges require programs such as Summ to get the job done.
In a divorce litigation matter, it is always advisable to request those records. A court may draw a negative inference when records are missing or contradictory.
In some cases, the crypto-savvy spouse is happy to be transparent, but the non-monied spouse remains wary. Granting read-only access to a live accounting platform can calm nerves and shorten discovery. In several divorce litigation matters, I have been able to view a spouse’s transaction history with data pulled live from the spouses’ exchange and wallet accounts via API.
Investigators should be aware, however, cryptocurrency accounting programs do allow individuals to change, add, and remove transactions manually. Therefore, I will generally perform some additional steps to investigate and validate the transactions/balances in more contentious divorce litigation matters.
Cryptocurrency doesn’t have to complicate a divorce. Accurate, software-driven records can:
If you or your ex-spouse hold digital assets, enlist a qualified forensic accountant early and leverage tools like Summ to build a rock-solid evidentiary foundation.
Contact Mark DiMichael or another member of Citrin Cooperman’s Digital Assets Practice to further discuss.
Summ simplifies crypto tax reporting across 3,500+ wallets, exchanges, and blockchains. It generates precise, accountant-endorsed reports for a wide range of crypto activity, including DeFi and on-chain transactions, helping users stay fully compliant.
Mark DiMichael, CPA/ABV, CFF, CFE, CCFI is a forensic accountant specializing in divorce matters; Citrin Cooperman Digital Asset Practice Leader.
The way cryptocurrencies are taxed in most countries mean that investors might still need to pay tax, regardless of whether they made an overall profit or loss. Depending on your circumstances, taxes are usually realized at the time of the transaction, and not on the overall position at the end of the financial year.
In most countries you are required to record the value of the cryptocurrency in your local currency at the time of the transaction. This can be extremely time consuming to do by hand, since most exchange records do not have a reference price point, and records between exchanges are not easily compatible.
You just need to import your transaction history and Summ (formerly Crypto Tax Calculator) will help you categorize your transactions and calculate realized profit and income. You can then generate the appropriate reports to send to your accountant and keep detailed records handy for audit purposes.
We always recommend you work with your accountant to review your records. If you would like your accountant to help reconcile transactions, you can invite them to the product and collaborate within the Summ web app. We also have a complete accountant suite aimed at accountants.
Summ (formerly Crypto Tax Calculator) handles all non-exchange activity, such as onchain transactions like Airdrops, Staking, Mining, ICOs, and other DeFi activity. No matter what activity you have done in crypto, we have you covered with our easy to use categorization feature, similar to Expensify.
Our subscription pricing is per year not tax year, so with an annual subscription you can calculate your crypto taxes as far back as 2013. The process is the same, just upload your transaction history from these years and we can handle the rest.
Yes, Summ is designed to generate accountant-friendly tax reports. You simply import all your transaction history and export your report. This means you can get your books up to date yourself, allowing you to save significant time, and reduce the bill charged by your accountant. You can discuss tax scenarios with your accountant, and have them review the report.
Summ has an annual subscription which covers all previous tax years. If you need to amend your tax return for previous years you will be covered under the one payment.
Summ covers thousands of exchanges, wallets, and blockchains, and DeFi apps, but if you do not see your exchange on the supported list we are more than happy to work with you to get it supported. Just reach out to [email protected] or via the in-app chat support feature and we will get you sorted.
We do! Summ integrates with many NFT marketplaces and offers categorization options for any NFT-related activity (minting, buying, selling, trading).
Summ is free to use immediately upon signup, allowing you to import your transactions and take advantage of our smart suggestion and auto-categorization engine, portfolio tracking, DeFi and NFT support. For access to reports, the tax loss harvest tool or chat and priority support, you will need to upgrade to the appropriate paid plan.
