US crypto tax services for Americans abroad

Simply owning cryptocurrency doesn't create a tax obligation. You report crypto transactions when you dispose of it (selling, trading, spending) or receive it as income. However, if you hold crypto on foreign exchanges with values exceeding $10,000, you may have FBAR reporting requirements even if you haven't sold anything.

This is a common situation we help expats address. The Streamlined Filing procedures may allow you to file amended returns for the past three years and come into compliance. The process requires certifying that your non-compliance was non-willful, calculating the tax and interest owed, and submitting the complete filing package. We help clients evaluate whether they qualify and prepare the necessary filings.

Transfers between your own wallets or exchanges aren't taxable events, but they complicate cost basis tracking. We trace your holdings through transfers to maintain accurate acquisition dates and costs. This becomes particularly important when you've acquired crypto across multiple years, exchanges, or countries, as the cost basis determines your capital gain or loss when you eventually sell.

Yes. Every disposal of cryptocurrency (selling, trading, spending) needs to be reported on Form 8949. This includes trading one crypto for another, which many people don't realize is a taxable event. If you have hundreds or thousands of transactions, we work with the transaction exports from your exchanges to report them properly.

Cryptocurrency received as payment for services is taxed as ordinary income at its fair market value when you receive it. You report this income on Schedule C if you're self-employed. Later, when you sell that crypto, you'll have a capital gain or loss based on how the value changed since you received it. This creates two separate reporting requirements.

Capital losses from crypto can offset capital gains from other sources. If your capital losses exceed your gains, you can deduct up to $3,000 against ordinary income per year, with the remaining losses carried forward to future years. This is the same treatment as losses from stocks or other capital assets.

The location of your exchange doesn't change your US reporting requirements. You still report all crypto transactions the same way regardless of where the exchange is based. However, holding crypto on foreign exchanges may trigger FBAR reporting if the aggregate value exceeds $10,000 at any point during the year.

The general statute of limitations is three years from when you filed your return. However, if you omitted more than 25% of your income, the IRS has six years. For unfiled returns, there's no statute of limitations. Through the Streamlined Filing procedures, expats typically file amended returns for the past three years plus the current year.

Staking rewards are generally treated as ordinary income at their fair market value when you receive them. This income is reported on Schedule 1 of your tax return. Later, when you sell or trade those staking rewards, you'll have a capital gain or loss based on how the value changed since you received them. This creates two separate tax events: income when received, and capital gains/losses when disposed of.