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Crypto Tax Accountant, NJ CPA for Bitcoin, DeFi & Digital Assets

Written-scope crypto tax preparation and records-based reconciliation for Solana, DeFi, staking, and Form 1099-DA. Use the contact form to describe the records and filing scope you need reviewed.

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Quick Answer

  • IRS treats digital assets as property; a sale, exchange, or use as payment generally produces a realization event that can create gain or loss. Character and rate depend on the asset, use, basis, holding period, and complete return.
  • NJ provides no preferential long-term capital-gain rate and does not allow individuals to carry a net loss from the disposition-of-property category to another year.
  • For broker-effected 2025 sales, Form 1099-DA generally reports gross proceeds, a requirement that reaches covered and noncovered assets alike; every lot sold in 2025 was noncovered, because covered status requires an acquisition after 2025, so 2025 basis reporting was voluntary. For post-2025 sales, mandatory basis reporting generally applies only to covered assets acquired after 2025 through a qualifying acquisition and retained in broker custody; noncovered basis reporting remains voluntary. Treas. Reg. §1.1012-1(j) supplies the continuing wallet-by-wallet rule, while Rev. Proc. 2024-28 is transition relief for allocating pre-2025 unattached basis.
  • IRC §1091 applies to stock or securities. Most directly held cryptocurrency is generally outside that rule, but tokenized equities, fund interests, and other instruments require asset-specific review. Other tax doctrines can still apply; Monaco CPA does not provide loss-harvesting or transaction strategy.
  • No public calculator on this page determines tax liability. Staking, mining, airdrop, and disposition results require supported basis, expenses, activity classification, and complete-return facts.

Key Facts

  • •NJ has no preferential long-term capital-gain rate
  • •NJ does not allow capital loss carryforward for individuals
  • •Form 1099-DA generally reports 2025 gross proceeds for broker-effected sales; every lot sold in 2025 was noncovered, so basis reporting for those sales was voluntary
  • •Mandatory basis reporting phases in for qualifying covered-asset sales after 2025
  • •Wallet-by-wallet basis tracking required since January 1, 2025 (Treas. Reg. §1.1012-1(j)); Rev. Proc. 2024-28 is the one-time safe harbor for pre-2025 basis
  • •Crypto-to-crypto exchanges generally are realization events; transfers between wallets under the same beneficial ownership are not dispositions merely because they move on-chain
  • •For third-party-network transactions, OBBBA restored the mandatory 1099-K threshold to more than $20,000 and more than 200 transactions (reversing the $600 plan); payment-card merchant acquirers have no federal de-minimis threshold
  • •1099-NEC reporting threshold rises to $2,000 for 2026 (OBBBA Section 70433)
  • •100% bonus depreciation is permanent under OBBBA for mining equipment acquired (and placed in service) after January 19, 2025

Why Work With a Crypto Tax Accountant?

Digital-asset reporting can involve DeFi protocol interactions, cross-chain bridges, staking-reward valuation, and capital gain or loss reporting. A records-focused tax accountant can review those issues within an accepted written engagement scope. Greg Monaco, CPA provides accepted written-scope tax preparation and multi-chain DeFi reconciliation across Solana, Ethereum, and EVM-compatible networks.

Whether your records cover a simple exchange portfolio or multiple wallets, DEXs, and lending protocols, multi-wallet records review and tax preparation under an accepted written scope can support cost-basis reconciliation and transaction classification from the information supplied. The taxpayer remains responsible for complete source records; no completeness or compliance outcome is guaranteed, including for the new Form 1099-DA requirements (gross proceeds generally for broker-effected 2025 sales, every lot of which was noncovered, so 2025 basis reporting was voluntary; mandatory basis after 2025 only for qualifying covered assets).

Records-first scope

No Public Crypto Liability Calculator

A rate applied to gross staking, mining, airdrop, or disposition amounts is not a complete tax calculation. Business expenses, basis, holding period, activity classification, Net Investment Income Tax, self-employment tax, filing status, and the rest of the federal and New Jersey returns can change the result.

The former estimator is withheld because it could not establish those facts. Use the 1099-DA records tools for bounded reconciliation questions, or submit a written scope request when complete source records are available.

Review 1099-DA RecordsRequest Written Scope

Services Included

Written-scope crypto tax preparation and records-based reconciliation by Gregory Monaco, CPA, licensed in New Jersey (#20CC04711400).

Crypto Tax Preparation

Tax return preparation for crypto traders and investors under an accepted written scope. I reconcile client-supplied exchange data, DeFi transactions, and cross-chain activity for return preparation; missing records and unresolved transaction characterizations must be addressed before filing.

Solana & DeFi Reconciliation

Focused on high-volume Solana DEX trades, Jupiter aggregator transactions, Raydium/Orca LP positions, SPL token airdrops, and staking reward tracking.

Cost Basis & Compliance

Per-wallet basis reporting under Treas. Reg. §1.1012-1(j). I report a taxpayer's documented method for completed dispositions when the source records and platform exports support it; Monaco CPA does not recommend prospective lot selection or transaction timing.

IRS Notice Reconciliation Support

Tax-data review for CP2000/CP2501 and 1099-DA discrepancies, with organized calculations for a response. Crypto examination defense and VDP representation are not offered.

Greg Monaco has been featured in New Jersey CPA Magazine and quoted in Yahoo Finance, GOBankingRates, BeInCrypto, and BlockTelegraph, with coverage syndicated to Nasdaq, covering cost basis tracking, Form 1099-DA compliance, DeFi tax treatment, and crypto market analysis.

GOBankingRates:5 Tax Traps To Avoid on Crypto (opens in a new tab)BeInCrypto:XRP: What is it Really Good For? (opens in a new tab)GOBankingRates:Top Cryptos Poised To Surge in 2026 (opens in a new tab)
View all press coverage →

Third-party market coverage in which Greg was quoted - not investment advice or a recommendation of any asset.

Digital-Asset Work Stays With Monaco CPA

Gregory Monaco, CPA LLC is the firm responsible for every accepted engagement described on this site. Greg remains the sole practitioner and reviews, approves, and signs all client-facing work. Separate domains are outside this site's terms, privacy notice, and publication-review controls unless they say otherwise on their own pages.

Prediction Market Taxes

If you traded on Polymarket, Kalshi, Robinhood, or other event contract platforms, the tax treatment remains unsettled. Keep complete platform, wallet, fee, and settlement records and do not infer a default classification. View the reviewed tax resources →

Crypto Filing Checklist

Before submitting records, use the checklist to organize exchange CSVs, 1099-DAs, wallet records, and DeFi transaction data. The checklist does not establish that a client's records are complete. View the crypto filing checklist →

Need traditional tax preparation, bookkeeping, or accounting? View the full services →

Request a Written Crypto Scope

Cryptocurrency Tax FAQ

How is cryptocurrency taxed in the United States in 2026?
The IRS treats digital assets as property (Notice 2014-21). A sale, exchange, or use as payment generally produces a realization event, but the result can be gain or loss and its character depends on the asset, use, basis, and holding period. Rev. Rul. 2023-14 addresses native proof-of-stake rewards received by a cash-method taxpayer when the taxpayer gains dominion and control; Rev. Rul. 2019-24 addresses a hard fork followed by an airdrop, not every promotional airdrop. Mining, compensation, DeFi, and other receipts require their own facts review. For 2025 broker-effected sales, Form 1099-DA generally reports gross proceeds; every lot sold in 2025 was noncovered, because covered status requires an acquisition after 2025, so basis reporting for those sales was voluntary. For post-2025 sales, mandatory basis reporting generally applies only to covered digital assets acquired after 2025 through a qualifying acquisition and held in the broker's custody until disposition; noncovered basis reporting remains voluntary.
Are Solana staking rewards taxable?
Rev. Rul. 2023-14 treats native proof-of-stake validation rewards as income to the cash-method taxpayer in its facts when the taxpayer gains dominion and control. Apply that rule to Solana only after confirming when the taxpayer could transfer, sell, exchange, or otherwise dispose of the reward and whether the arrangement matches the ruling. Reporting location and any self-employment-tax treatment depend on the taxpayer's activity. A later disposition is a separate realization event measured from the reward's supported basis.
Does New Jersey tax crypto gains differently than the federal government?
New Jersey does not provide a preferential rate for long-term capital gains. Supported net gains from dispositions of property enter the applicable NJ Gross Income Tax category and are taxed under the graduated rate schedule; New Jersey category-netting and loss rules differ from the federal system. The state effect of a crypto disposition depends on the complete New Jersey return, not the holding period alone.
What is IRS Form 1099-DA and how does it affect crypto taxes in 2026?
Form 1099-DA is the IRS reporting form for digital asset transactions. Custodial brokers generally report gross proceeds for broker-effected 2025 digital-asset sales; every lot sold in 2025 was noncovered, because covered status requires an acquisition after 2025, so basis reporting for those sales was voluntary. For sales after 2025, mandatory basis reporting generally applies only to covered digital assets acquired after 2025 through a qualifying acquisition and held in the broker's custody until disposition; reporting basis for noncovered assets is voluntary. Notice 2024-56 provides good-faith penalty relief for 2025 reporting; Notice 2024-57 provides transaction-specific reporting relief. H.J. Res. 25 repealed the separate broker rule for specified noncustodial trading front-end services, but that does not categorically exempt every DeFi-labeled transaction or intermediary. Taxable income and gains still must be self-reported.
Do wash sale rules apply to cryptocurrency?
IRC §1091 applies to losses on stock or securities. Most directly held cryptocurrency is generally analyzed as property rather than stock or a security for this federal income-tax rule, but that does not resolve every token, tokenized equity, fund interest, or other instrument. Confirm the asset before concluding that §1091 does not apply; related-party, economic-substance, basis, and other rules can still matter. Monaco CPA does not recommend repurchases, loss harvesting, or transaction timing.

Need Help With Your Crypto Taxes?

Use the contact form to request a records-based review, clear next steps, and a written quote.

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Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.