5 Ways to Slay the Crypto Game in 2025

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Brought to you by ChainBlock Financial | Saim.cpa

💡 Saim’s Tip: Properly allocating income and deductions ensures tax optimization and IRS compliance. I cannot stress this enough!

Hey everyone, Saim here, your Crypto CPA from the Lone Star State at Akif CPA and ChainBlock Financial. We’re big on giving back here, and today I’m going to give you a simple 5-Step Framework for Crypto Success. These are tested tips we’ve used to save our clients millions!

Step 1: Gather Complete Records

Collect all trades from all wallets and years. Keep everything centralized:

Year 1, Year 2, Year 3…
Wallet 1, Wallet 2, Wallet 3…

Having a full dataset ensures accuracy and prevents missed transactions. Think of your data as the base for the success you will earn in tax season.

Step 2: Clean, Classify, and Allocate Data

Before classifying transactions, make a backup of your raw data. (I can’t help but chuckle here, because we all know someone in the #cryptofam who’s suffered a horrible data loss and had no choice but to smile through it)

Then:

Properly classify each transaction (trades, liquidity pools, staking, etc.)
Allocate to the correct taxable categories

Clean data is the foundation of accurate crypto tax reporting.

Step 3: Use Wallet-Based Accounting

As per IRS Notice 2024-28:

2025 and beyond: Wallet-based accounting is mandatory
Before 2025: Universal accounting was allowed

Using the correct accounting method ensures IRS compliance.

Step 4: Apply Tax Loss Harvesting and Avoid Duplicates

Include prior-year loss carryforwards
Ensure no double counting from 1099s (Coinbase, Kraken, Gemini, etc.)

Duplicate reporting can lead to overpaid taxes or misstated expenses — both serious compliance risks. If you think Crypto Tax Loss Harvesting is going away because of Box 1i, think again

We looked at the new 1099-DA … and here’s the big red box that has everyone freaking out:

📌 Box 1i → “wash sale losses disallowed.”
Sounds like the end of tax loss harvesting, right?

You might think this is the start of the end… but I say NO. Here’s why

IRS + Treasury don’t have full visibility into DeFi
On-ramp exchanges (Coinbase, Kraken, Gemini) will issue 1099-DAs
But how will they know about DeFi projects?
Or international exchanges?
Or when you log in with a VPN?

The rules are complicated, but I see strategy in them. That’s why I’m calling it—tax loss harvesting isn’t ending anytime soon.

Step 5: Report on the Correct Tax Forms

Schedule D & Form 8949: Capital gains and trades
Schedule 1 & Schedule C: Mining rewards, staking income, or active crypto investments

Properly allocating income and deductions ensures tax optimization and IRS compliance. I cannot stress this enough. Open your letters, work with your CPA, and make sure you are complying with the changing rules for crypto!

✅ With these five steps, you have the blueprint to confidently handle any crypto tax situation, from simple trades to complex DeFi activity.

About ChainBlock Financial

ChainBlock Financial is Akif CPA’s dedicated Crypto CPA branch. Saim Akif and his team work diligently to make sure clients understand the latest IRS rules and are compliant, but strategic about keeping those hard-earned crypto rewards. Sign up for a crypto tax audit today!

ChainBlock Financial | Saim.cpa

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