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Tax readiness

Preparing Digital Asset Records for Tax Review

How to organize wallet, exchange, basis, bridge, and DeFi information before professional tax work begins.

By Alex Cruzet, MAcc, MBA

Use this guide as a planning and preparation framework. Adapt each item to the organization, period, materiality, and professional requirements involved.

Federal tax sources last checked August 12, 2026. State, local, and non-U.S. rules are outside this guide and require separate review.

01

Build the complete source inventory

  • List every wallet, exchange, custodian, payment account, and relevant blockchain network used during the period.
  • Include closed accounts and addresses that had activity earlier in the year.
  • Retain original transaction exports and identify any sources that cannot produce complete records.
  • Document ownership, entity, and business or investment purpose for each source.
02

Organize transfers and basis support

  • Identify transfers between accounts under common ownership so they can be matched and reviewed.
  • Collect acquisition dates, quantities, values, and supporting records for opening positions.
  • Preserve fee and gas information when available.
  • Flag gifts, contributions, distributions, inheritances, migrations, and wrapped-asset activity for additional context.
03

Document complex activity

  • Describe the purpose and mechanics of material staking, lending, borrowing, liquidity, bridge, NFT, and token events.
  • Identify protocol names, relevant contracts, counterparties, and any related agreements.
  • Separate rewards, incentives, fees, claims, deposits, withdrawals, and internal transfers when possible.
  • Do not assume an exchange or software label determines the final tax treatment.
04

Prepare the review handoff

  • Provide prior-year reports, elections, workpapers, and unresolved basis schedules.
  • List missing records, known duplicates, uncertain ownership, and classification questions.
  • Identify the people who can explain operating facts and unusual transactions.
  • Use the secure document-delivery method provided by the engaged professional; never email private keys or credentials.
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This guide is general information, not accounting, tax, legal, or investment advice. Conclusions and requirements depend on the facts and a properly scoped professional engagement.