| name | calculating-crypto-taxes |
| description | Calculate cryptocurrency tax obligations with cost basis tracking, capital gains computation, and Form 8949 generation.
Use when calculating crypto taxes, generating tax reports, comparing cost basis methods, or identifying taxable events.
Trigger with phrases like "calculate crypto taxes", "generate tax report", "cost basis FIFO", "capital gains", "Form 8949", or "crypto taxable events".
|
| allowed-tools | Read, Write, Bash(crypto:tax-*) |
| version | 2.0.0 |
| author | Jeremy Longshore <jeremy@intentsolutions.io> |
| license | MIT |
Calculating Crypto Taxes
Overview
Calculate cryptocurrency tax obligations from transaction history. Supports multiple cost basis methods (FIFO, LIFO, HIFO), identifies taxable events (trades, staking, airdrops), and generates Form 8949 compatible reports.
DISCLAIMER: This tool provides informational calculations only, not tax advice. Consult a qualified tax professional for your specific situation.
Prerequisites
Before using this skill, ensure you have:
- Transaction history exported as CSV from your exchanges (Coinbase, Binance, Kraken, etc.)
- Python 3.8+ installed
- Understanding of your tax jurisdiction's crypto rules
Instructions
Step 1: Prepare Transaction Data
Export your transaction history from each exchange as CSV. Supported formats:
| Exchange | Export Location |
|---|
| Coinbase | Reports → Tax documents → Transaction history CSV |
| Binance | Orders → Trade History → Export |
| Kraken | History → Export |
| Generic | See {baseDir}/references/exchange_formats.md for column mapping |
Step 2: Run Basic Tax Calculation
Execute the tax calculator with your transaction file:
python {baseDir}/scripts/tax_calculator.py --transactions your_trades.csv --year 2025
This uses FIFO (IRS default) and outputs:
- Total capital gains/losses
- Short-term vs long-term breakdown
- Summary of taxable events
Step 3: Choose Cost Basis Method
Compare different methods to understand tax implications:
python {baseDir}/scripts/tax_calculator.py --transactions trades.csv --compare-methods
Or specify a method:
| Method | Flag | Description |
|---|
| FIFO | --method fifo | First In First Out (IRS default) |
| LIFO | --method lifo | Last In First Out |
| HIFO | --method hifo | Highest In First Out (minimize gains) |
Step 4: Generate Tax Report
Create Form 8949 compatible CSV:
python {baseDir}/scripts/tax_calculator.py --transactions trades.csv --method fifo --year 2025 --output form_8949.csv --format csv
Output includes:
- Description of property
- Date acquired
- Date sold
- Proceeds
- Cost basis
- Gain or loss
Step 5: Handle Income Events (Optional)
For staking, airdrops, or mining income:
python {baseDir}/scripts/tax_calculator.py --transactions all_events.csv --income-report
This identifies:
- Staking rewards (valued at receipt)
- Airdrops (valued at receipt)
- Mining income
- DeFi yield
Step 6: Multi-Exchange Consolidation
Combine multiple exchange exports:
python {baseDir}/scripts/tax_calculator.py --transactions coinbase.csv binance.csv kraken.csv --year 2025
The tool:
- Merges all transactions
- Sorts by date
- Calculates unified cost basis
- Handles transfers between exchanges
Output
Tax Report (Form 8949)
============================================================
CRYPTO TAX REPORT - 2025
============================================================
SHORT-TERM CAPITAL GAINS/LOSSES (< 1 year)
------------------------------------------------------------
Description Acquired Sold Proceeds Cost Gain/Loss
0.5 BTC 03/15/25 06/20/25 $52,500 $47,500 $5,000
2.0 ETH 04/01/25 08/15/25 $7,200 $6,400 $800
------------------------------------------------------------
Short-term Total: $5,800
LONG-TERM CAPITAL GAINS/LOSSES (>= 1 year)
------------------------------------------------------------
Description Acquired Sold Proceeds Cost Gain/Loss
1.0 BTC 01/10/24 02/15/25 $95,000 $42,000 $53,000
------------------------------------------------------------
Long-term Total: $53,000
============================================================
SUMMARY
------------------------------------------------------------
Total Proceeds: $154,700
Total Cost Basis: $95,900
Net Capital Gain: $58,800
Short-term Gains: $5,800
Long-term Gains: $53,000
============================================================
Income Report
CRYPTO INCOME - 2025
------------------------------------------------------------
Type Date Asset Quantity FMV (USD)
Staking 01/15/25 ETH 0.05 $160.00
Staking 02/15/25 ETH 0.05 $175.00
Airdrop 03/01/25 ARB 100 $150.00
------------------------------------------------------------
Total Income: $485.00
Error Handling
See {baseDir}/references/errors.md for comprehensive error handling.
Common issues:
- Missing columns: Verify CSV format matches exchange template
- Unknown transaction type: Review and manually categorize
- Insufficient lots: Check for missing buy transactions
Examples
See {baseDir}/references/examples.md for detailed usage examples.
Quick Examples
Basic tax calculation:
python tax_calculator.py --transactions trades.csv --year 2025
HIFO to minimize gains:
python tax_calculator.py --transactions trades.csv --method hifo --year 2025
JSON output for processing:
python tax_calculator.py --transactions trades.csv --format json --output tax_data.json
Verbose with lot details:
python tax_calculator.py --transactions trades.csv --verbose --show-lots
Configuration
Settings in {baseDir}/config/settings.yaml:
- Default method: Cost basis method (fifo, lifo, hifo)
- Tax year start: January 1 (US) or fiscal year
- Exchange formats: Column mappings for CSV parsing
- Holding period: Days for long-term (default: 365)
Resources
