SolanaBlenderU.S. Crypto Tax Guide (Neutral Overview)
This page summarizes how the IRS generally treats digital assets and explains how wallet hygiene can help you keep records that are both accurate and private while staying compliant.
1) IRS & Digital Assets: Quick Overview
The IRS treats most crypto disposals — selling, swapping one asset for another, or spending — as taxable events that may create capital gains or losses. Certain income (staking rewards, mining, airdrops, certain incentives) may be ordinary income. This page is informational only and is not tax or legal advice.
2) What counts as a taxable event?
Sales & swaps
Converting SOL to USD, or swapping SOL for another token, typically triggers capital gains/losses.
Spending
Purchases using crypto are disposals; gains/losses may apply based on your cost basis.
Income events
Mining, staking, protocol incentives, and some airdrops can be taxable as ordinary income when received.
Holding crypto without selling, swapping, or spending is generally not a taxable event until disposal.
3) Common IRS forms you might encounter
- Form 1040 (Digital Asset question): The annual individual return asks whether you engaged with digital assets during the tax year.
- Form 8949 & Schedule D: Report capital gains and losses from crypto disposals; totals roll up to Schedule D.
- Schedule 1 / Schedule C: Report certain income (e.g., rewards). Business activity may belong on Schedule C.
- 1099 Forms: Some platforms issue tax forms (e.g., 1099‑B/1099‑MISC). Keep these for your records.
4) Cost basis & lot selection
- Cost basis: Usually what you paid (in USD) plus certain fees.
- Lot selection: Methods like FIFO or Specific Identification affect gains/losses; be consistent and keep records.
- Transfers: Moving crypto between your own wallets is generally non‑taxable, but you should track basis continuity.
5) How wallet hygiene helps with compliance
Clear categories
Keep separate wallets for long‑term holding, trading, DeFi, NFTs, and income to simplify reconciliation.
Private structure
Use SolanaBlender to route funds between roles without exposing every link publicly, while retaining internal logs.
Error reduction
Cleaner separation helps avoid double‑counting or missed lots in your tax software or spreadsheets.
6) Record‑keeping tips
- Preserve exchange and wallet histories, CSV exports, API logs, and SolanaBlender session references.
- Label internal transfers clearly (e.g., “Treasury → Trading Wallet”).
- Store USD valuations at time of each disposal; many tax tools can help.
7) Official resources
- IRS — Digital Assets
- IRS — Instructions for Form 8949
- IRS — About Schedule D (Form 1040)
- IRS — About Schedule 1 (Form 1040)
Always check the most current IRS guidance and consult a qualified tax professional.
Explore related guides: HMRC (UK) · Privacy Hubs · Cross‑Chain Swaps