Crypto Tax Preparation
Full tax return preparation for crypto traders and investors. We reconcile exchange data, DeFi transactions, and cross-chain activity into IRS-compliant returns.
Crypto Tax Accountant, NJ CPA for Bitcoin, DeFi & Digital Assets
Virtual crypto tax prep for Solana, DeFi, and staking. Estimate your 2025 federal + NJ tax below, then book a consultation for the exact number.
Use Free Estimator ↓Key Facts
- •NJ taxes crypto as ordinary income with no preferential long-term rate
- •NJ does not allow capital loss carryforward for individuals
- •Form 1099-DA reporting began for 2025 (gross proceeds only)
- •Cost basis reporting on 1099-DA starts 2026
- •Rev. Proc. 2024-28 requires wallet-by-wallet tracking since January 1, 2025
- •All crypto trades are taxable events (IRC 61, Notice 2014-21)
- •OBBBA reverted 1099-K threshold to $20,000/200 transactions (reversing the $600 plan)
- •1099-NEC reporting threshold rises to $2,000 for 2026 (OBBBA Section 70433)
- •100% bonus depreciation is permanent under OBBBA for mining equipment placed in service after January 19, 2025
Why Work With a Crypto Tax Accountant?
A cryptocurrency tax accountant understands the unique complexities of digital asset reporting that general tax preparers often miss, from DeFi protocol interactions and cross-chain bridges to staking reward valuation and wash sale compliance. Greg Monaco, CPA handles everything from bitcoin tax preparation to multi-chain DeFi reconciliation across Solana, Ethereum, and EVM-compatible networks.
Whether you need a crypto tax preparer for a simple exchange portfolio or comprehensive crypto tax preparation across multiple wallets, DEXs, and lending protocols, working with a dedicated bitcoin tax accountant ensures accurate cost basis tracking, proper gain/loss classification, and full IRS compliance, including the new Form 1099-DA requirements for 2025.
Example Estimate
Single filer · $50-$100K income · $30K staking rewards
Federal: ~$6,600 · NJ State: ~$1,900 · Total: ~$8,500
Try it with your numbers ↓Built by a CPA2025 bracketsUsed by crypto traders nationwide
2025 Crypto Tax Estimator
Covers staking rewards, short & long-term gains, NIIT, and self-employment tax. Enter multiple crypto income types at once.
Example Crypto Tax Scenarios (2026)
| Scenario | Federal Tax | NJ State Tax | Combined |
|---|---|---|---|
| 50 trades, $25K short-term gains (22% bracket) | $5,500 | $1,593 | $7,093 |
| 200 trades, $10K net long-term gains (HIFO-optimized, 15% bracket) | $1,500 | $637 | $2,137 |
| Staking income $5,000 + $15K short-term gains (22% bracket) | $4,400 | $1,274 | $5,674 |
NJ taxes all crypto gains as ordinary income — no preferential long-term rate (NJ GIT 6.37% at $150K+ income). HIFO (Highest-In-First-Out) cost basis selection can meaningfully reduce taxable gains. These are illustrative estimates; actual tax depends on your full income picture, filing status, and cost basis records.
The estimator gives you a starting point. Below is what we do when you bring us the full picture.
What We Handle
All crypto engagements are handled personally by Greg Monaco, CPA, licensed in New Jersey (CPA #20CC04711400), with focused knowledge of digital asset taxation.
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
Revenue Procedure 2024-28 compliant cost basis tracking. We support FIFO, LIFO, HIFO, and Specific Identification methods across all exchanges and wallets.
IRS Audit Defense
Representation before the IRS for crypto-related audits, CP2000 notices, and correspondence. We handle 1099-DA discrepancies and unreported transaction inquiries.
Same CPA, Dedicated Crypto Practice
MonacoCryptoTax.com is operated by Gregory Monaco, CPA LLC, the same firm behind Monaco CPA. Greg Monaco handles all cryptocurrency tax engagements personally, bringing both traditional CPA knowledge and focused digital asset experience to every client.
Need traditional tax preparation, bookkeeping, or accounting? View our full services →
Go to MonacoCryptoTax.comCryptocurrency Tax FAQ
How is cryptocurrency taxed in the United States in 2025?
The IRS treats cryptocurrency as property (Notice 2014-21). Selling, trading, or spending crypto triggers capital gains tax - short-term (ordinary rates up to 37%) if held under one year, long-term (0%, 15%, or 20%) if held over one year. Receiving crypto as staking rewards, mining income, or airdrops is taxed as ordinary income at fair market value when received. Starting in 2025, exchanges must report transactions on Form 1099-DA.
Are Solana staking rewards taxable?
Yes. The IRS considers staking rewards as taxable ordinary income at the fair market value when you gain dominion and control (typically when rewards are credited to your wallet). This applies to all proof-of-stake chains including Solana, Ethereum, and Cosmos. The income is reported on Schedule 1 (or Schedule C if treated as a business), and any subsequent gain when selling the rewards is a separate taxable event.
Does New Jersey tax crypto gains differently than the federal government?
Yes, and it's worse. New Jersey has no preferential long-term capital gains rate. All crypto gains are taxed as ordinary income under the NJ Gross Income Tax, with rates from 1.4% to 10.75%. This means NJ residents holding crypto over one year still pay full ordinary rates at the state level, even though they get the lower 0%/15%/20% federal LTCG rates. The NJ tax on a $100,000 long-term gain can be $6,370+ regardless of hold period.
What is IRS Form 1099-DA and how does it affect crypto taxes in 2025?
Form 1099-DA is the new IRS reporting form for digital asset transactions, required from centralized exchanges and brokers starting in tax year 2025. It reports gross proceeds from crypto sales, and eventually cost basis. This means the IRS will have direct visibility into your trading activity, making accurate cost basis tracking and proper tax reporting more critical than ever.
Is crypto wash trading legal and do wash sale rules apply to crypto in 2025?
The 2022 Infrastructure Investment and Jobs Act extended wash sale rules to digital assets, effective for tax years beginning after December 31, 2024. This means for 2025, you generally cannot sell crypto at a loss and repurchase substantially identical tokens within 30 days to claim the loss. The rules align crypto with existing stock and securities wash sale treatment under IRC §1091.
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Need Help With Your Crypto Taxes?
The estimator gives you a starting point. I'll give you the exact number. Get in touch to discuss your crypto tax situation.