Let’s start with a number that might surprise you: in 2023, the IRS sent over 8,000 letters to taxpayers suspected of underreporting crypto income. If you’re trading Bitcoin, staking Ethereum, or flipping NFTs, this isn’t just a hobby, it’s a taxable event.
Cryptocurrency tax reporting is no longer the Wild West. It’s the IRS’ new frontier. And if you’re not treating your digital assets like other reportable income, you could be heading for a costly surprise come April.
At Estess CPAs, we help small business owners, self-employed professionals, and crypto-curious investors across Belle Chasse and Luling navigate these fast-changing waters. Here’s what you need to know in 2025 to stay compliant and save money.
What Counts as a Taxable Crypto Event?
Not everything in crypto is taxable. But a lot of it is. Here’s what the IRS wants you to report:
- Selling crypto for fiat currency (e.g., selling ETH for USD)
- Swapping one crypto for another (e.g., BTC to DOGE, even if no cash is involved)
- Using crypto to buy goods or services
- Earning crypto through mining, staking, or interest-bearing accounts
And yes, even that $50 airdrop from a new token? Taxable.
Short-Term vs Long-Term Gains: It Matters
Just like stocks, crypto gains are categorized as either short-term (held under 12 months) or long-term (held over a year). The difference? Your tax rate.
- Short-term gains are taxed at your regular income rate (could be as high as 37%).
- Long-term gains? Much friendlier, often 15% or 20%, depending on your income bracket.
Planning to HODL long-term? That could translate to serious savings. At Estess CPAs, we often work with clients to map out timelines for smarter liquidation strategies, legally reducing their crypto tax burden with better timing.
What About Crypto Losses?
Here’s a silver lining: losses can help reduce your taxes.
If your coins crashed and you sold at a loss, that can offset gains elsewhere. You can deduct up to $3,000 in capital losses per year against ordinary income, and carry the rest forward.
Just be sure your records are clean. You’ll need:
- Transaction dates
- Cost basis (how much you paid)
- Sale price
- Exchange or wallet used
We always recommend using crypto tracking tools like Coin Tracker or Koinly to make tax time less stressful, and pairing that with a real accountant who gets it.
Crypto Taxes 2025: What’s Changed?
The IRS is tightening the screws this year. Here’s what’s new for 2025:
- Digital asset question is now required on all returns. Ignoring it? Not smart.
- Brokers and exchanges (yes, even DeFi platforms) are being pushed to issue Form 1099-DA starting this year.
- Increased penalties for failure to report or misrepresenting crypto income.
We’re seeing the rise of digital asset taxation as a dedicated focus for the IRS. This isn’t just theory, it’s real enforcement. And if you’re in the gig economy, flipping tokens, or running a crypto-related side hustle, it affects you directly.
Pro Tips from Estess CPAs
Let’s make this simple. Here’s what we tell our clients:
Keep detailed records of every crypto transaction
Don’t rely solely on exchange-provided summaries, they’re often incomplete
Report income from staking, mining, and NFTs, yes, even “free” stuff
Consult a CPA if you made more than $600 in crypto income
Schedule a mid-year tax planning session (we recommend June or July)
Crypto taxes don’t have to be overwhelming. But they do need to be taken seriously. That’s why we stay ahead of IRS updates so you don’t have to.
Why Partner with Estess CPAs?
We’ve been helping New Orleans-area entrepreneurs and professionals manage their tax lives for over two decades. From the early dot-com boom to today’s decentralized world, we’ve seen it all.
At Estess CPAs, we treat you like family. Whether you’re in Belle Chasse or Luling, we work with you to customize a plan that fits your goals, not just your forms.
Want to avoid tax-time panic in 2026? Let’s talk now, before your wallet balance becomes a tax headache.
Let’s Get Started
📍Belle Chasse Office
Estess & Associates, LLC
7822 Highway 23, Belle Chasse, LA 70037
📞 (504) 433-5122
📍Luling Office
Estess & Company, LLC
128 Lakewood Drive, Luling, LA 70070
📞 (985) 785-1470