- Cost basis & walletsWallet-by-wallet basis records rebuilt and kept current.Learn more about cost basis reconstruction →
- Staking, mining & DeFiRewards, liquidity pools and swaps reported correctly.Learn more about staking, mining & DeFi →
- Form 1099-DABroker forms matched to your own records.Learn more about Form 1099-DA reconciliation →
- Web3 startupsFormation, QSBS, R&D and investor-ready books.Learn more about startup accounting →
Crypto as business revenue and payment
- Receiving crypto. Crypto received for goods or services is income at its fair market value when received. That value becomes your basis, and a later sale or swap produces a gain or loss.
- Paying people in tokens. Tokens paid to employees are wages at fair market value, subject to withholding and payroll tax. Contractors paid in crypto receive a 1099-NEC.
- Paying vendors in crypto is a disposition of the crypto, so it produces a gain or loss as well as an expense.
Mining, staking and validators
Mining rewards are income when received, and staking rewards are income when you gain control of them (Revenue Ruling 2023-14). Run as a business, that income also carries self-employment tax unless it flows through a corporation. Mining rigs and validator hardware can generally be written off through bonus depreciation, which is permanently 100% for property acquired after January 19, 2025.
Books that reconcile on-chain
- Wallet-by-wallet records. Since 2025, basis is tracked by wallet and account. A crypto sub-ledger reconciled to the general ledger every month keeps transfers between your own wallets from being mistaken for sales, and captures gas and bridging fees.
- Fair value accounting. Under ASU 2023-08, most crypto assets are measured at fair value with changes in net income, for fiscal years beginning after December 15, 2024. Tax still follows cost basis, so book and tax differ.
- Form 1099-DA. Brokers report gross proceeds for 2025 sales and cost basis for covered assets acquired from 2026. Business records, not the forms, should drive the return.
Tokens, stablecoins and structure
Token launches, SAFTs and treasury management carry tax and securities questions that need your attorney alongside us. For tax purposes, stablecoins are generally treated as property like other digital assets, even with the federal stablecoin framework enacted in 2025. Entity choice matters too: a C corporation may qualify for the QSBS exclusion on a later sale.
Frequently asked questions
How is crypto received as payment taxed for a business?
It is income at fair market value when received. That value becomes the basis, and selling or spending the crypto later produces a gain or loss.
Are tokens paid to employees taxable wages?
Yes. Tokens paid to employees are wages at fair market value, subject to withholding and payroll taxes. Contractors paid in crypto receive a 1099-NEC.
When are mining and staking rewards taxed?
Mining rewards are income when received, and staking rewards are income when you gain control of them. Run as a business, the income can also carry self-employment tax.
How should a business account for crypto on its financial statements?
Under ASU 2023-08, most crypto assets are measured at fair value with changes in net income, for fiscal years beginning after December 15, 2024. Tax still follows cost basis.
Do transfers between our own wallets create tax?
No. Moving crypto between wallets you control is not a sale, though fees paid in crypto can be. Monthly reconciliation keeps those transfers from being reported as sales.