What an amazing extension season.
Thank you to every client who trusted Count On Sheep with their crypto taxes, and to our team for the care and hard work behind every return.
We’re grateful to do what we do. Happy October 15!
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6 days left.
October 15 is the filing deadline for your extended 2025 US tax return.
Make sure you finalize your reports this weekend!
“I never cashed out. Why do I owe taxes?”
Because you swapped ＄100k of BTC for ETH. In the US, that counts as selling the BTC.
If you bought it for ＄40k, that’s a ＄60k gain. The money never has to touch your bank account.
Before filing, search your report for "missing cost basis," "unknown acquisition," and $0 basis.
Start with your biggest sales. Find the purchase records and check that transfers between your own wallets are matched.
Don't guess the missing numbers.
An empty wallet can still hold the history you need.
Import old wallets and exchange accounts, including purchases from earlier years.
A report can be ready to download and still be wrong by $100,000 or more.
Your crypto tax report can look complete and still be missing an entire wallet.
Before you file, check that every wallet and exchange you used is included, even the ones you haven't touched in months.
Only 10 days left until the October 15 U.S. tax filing extension deadline.
Still sorting out your crypto taxes? Get those wallets, exchange records, and transactions in order now. Don’t leave it until the last night.
Never cashed out? You may still have crypto trades to report.
Swapping ETH for SOL can create a taxable gain or loss, even if no dollars hit your bank account.
If you filed an extension, October 15 is 16 days away. Check your swap history before you file.
17 days until the October 15 extension deadline.
Haven’t reconciled your crypto? You are likely leaving tens of thousands of dollars on the table.
Missing cost basis can make your gains, and your tax bill, look much bigger than they are.
Reconcile them with a tax software or allow us to help out.
A blank cost-basis box on your 1099-DA does not mean your basis is $0.
If you bought crypto on one exchange and sold it on another, the selling platform often does not know what you paid.
Pull your original purchase and transfer records before calculating the gain. Then manually reconcile the data so you don't get taxed twice on the same asset.
Moving crypto between your own wallets isn’t taxable.
But if the transfer history is incomplete, your tax software may calculate the cost basis incorrectly and inflate your gains.
If you’re filing by October 15, check this now.
If you filed an extension, your 2025 tax return is due October 15.
Crypto cleanup usually takes longer than people expect, especially when coins moved between exchanges and wallets.
Don't wait until the final week to find missing cost basis.
CountOnSheep | Crypto Tax retweeted
Democrats and the Banks will now have to sit and watch the SEC and CFTC do crypto rulemaking. There is no stopping this train. They will also watch me and others continue to earn stablecoin yield.
Selling crypto at a loss and buying it right back could soon come with a tax problem.
The Digital Asset Tax Certainty Act (H.R. 10357) cleared the House Ways and Means Committee. It isn't law yet, but the proposed wash-sale change deserves attention if you use crypto losses to offset gains.
Under the bill, buying substantially identical assets within 30 days before or after a loss sale could stop you from deducting that loss immediately.
As written, that provision would apply to sales after September 14, 2026, if enacted. Waiting until the bill becomes law to pay attention could mean overlooking trades it would cover.
There's more in the bill...
Paying qualifying gas or transaction fees of $10 or less in crypto generally wouldn't trigger a separate gain or loss on the coins used to pay the fee. That would remove some tedious accounting. It wouldn't make the underlying trade tax-free or create a general exemption for small purchases.
Qualifying dollar stablecoins would also get simpler treatment when used near their redemption value, reducing the need to account for tiny price differences. Selling BTC for a stablecoin would still require calculating the gain or loss on your BTC.
For crypto lending, certain qualifying arrangements would let you lend assets and receive them back without treating the transfer itself as a taxable sale. The conditions matter here. A DeFi product wouldn't qualify just because it calls itself a loan.
The bill also specifies ordinary-income treatment for mining and staking rewards. It doesn't create a blanket rule that lets you wait until you sell your rewards to pay tax.
And there's an optional accounting method for eligible widely traded assets that uses year-end market values. Before choosing it, understand the trade-off: you could recognize gains on crypto you still hold, with gains and losses treated as short-term.
For anyone planning to harvest crypto losses this year, the wash-sale provision and its proposed effective date are worth discussing with your tax professional now.
The bill still needs to pass Congress and be signed into law, and the language could change.
