Crypto tax enforcement is tightening.
More reporting. More audits. Less room for mistakes.
Navigating crypto taxes can be challenging, so we asked Nick Waytula, Head of Tax at Summ, to share his expert insights. With extensive experience reviewing crypto tax reports, Nick sees the same mistakes come up time and time again:
1. “I didn’t trade much, so it probably doesn’t matter.”
False! Even small amounts of activity can create reporting obligations, especially if you:
• swapped tokens
• earned rewards or interest
• moved assets between wallets
Most tax issues come from missing transactions, not large trades.
2. Ignoring on-chain activity
Exchange trades are only part of the picture. On-chain activity such as lending and borrowing, DeFi swaps, bridging, and airdrops is often overlooked and that’s where inaccuracies start to creep in.
If it happened on-chain, it usually needs to be accounted for.
3. Relying on manual tracking
Using spreadsheets to track crypto activity increases the risk of errors, makes reconciliation painful, and doesn’t scale as activity grows. One missed or mislabelled transaction can throw off an entire report and this is one of the most common issues Nick comes across.
The good news? Crypto taxes don’t have to be stressful! With Summ, CoinRabbit users can simplify reporting and focus on strategy. Enjoy 25% off with our exclusive promo and make tax season even more effortless 💼
Learn more: https://lnkd.in/ew24Wxpz