Hello ladies & degens, welcome to Crypto Tax Made Easy!
I'm Matt Walrath, founder of Crypto Tax Made Easy, and my mission is to reduce your stress & anxiety around crypto taxes.
So despite the seriousness of the topic...I endeavor not to bore you to death. I'm not an accountant so that should be easy...no offense accountants, I love you guys ;)
So if I'm not an accountant, who am I to help with crypto taxes?
A little background:
In 2020 I started experimenting in the wonderful world of Decentralized Finance (defi). But this created an absolute nightmare at tax time.
Prior to 2020 my crypto taxes were easy. I bought and HODL'd BTC and ETH on centralized exchanges. Nothing too complicated.
With over 1000 defi transactions in 2020, I had so much stress & anxiety while trying to get an accurate tax report!
I ended up having to file an extension, but this didn't help because I couldn't find a competent accountant to help me navigate the tax impact of defi & NFTs.
I tested out 6 different crypto tax softwares, and all of them gave me wildly different estimates of what I owed the tax man.
And many lacked integrations with some of the 'exotic' blockchains I was using at the time...like Binance Smart Chain (not so exotic anymore!).
I ended up finding one tax software that was the least-bad of all (more on that soon). And developed a system to fix all of the transactions it got wrong in a time-efficient manner.
I documented my process in detail because I didn't plan to stop using defi. And I wanted a guide that I could reference in future tax seasons. That way I didn't have to keep re-learning the process.
I shared this guide with one of the crypto communities I was a leader in. And things snowballed from there.
Hundreds of people purchased the DIY crypto tax guide. And collectively they saved tens of millions in taxes vs. what the crypto tax softwares estimated they owed.
A few accountants in the crypto community asked me if I could train their firm on the process. And I developed a continuing professional development (CPD) curriculum for accountants.
Then, one of my friends in the community asked me if I could just do his crypto tax report for him. I did, and our done-for-you crypto tax service was born.
Now my goal is to share more of what I've learned publicly to help those suffering with stress & anxiety related to their crypto taxes. And this newsletter will serve that function.
So stay tuned, and make sure to subscribe if you need help as the next issue will be my Ultimate Crypto Tax Guide.