Episode•April 3, 2025•19 min

Demystifying Cryptocurrency Taxes with Janna Scott | Ep. 373

In this episode of Money Talk with Tiff, host Tiffany Grant dives deep into the world of crypto taxes with special guest Janna Scott. If you've ever wondered about the tax implications of trading or holding cryptocurrency, this episode is a must-listen! Takeaways In this episode, we dove deep into the fun and sometimes tricky world of crypto taxes, covering everything from capital gains to income and how they affect your wallet. Janna Scott, our guest guru, explained that short term capital gains tax rates can range from 28% to 37%, which is a big bite out of your profits if you're flipping crypto like pancakes! We learned that everything is reportable when it comes to crypto transactions, regardless of how small, so don’t go hiding those pennies under your mattress! Janna also shared some eye-opening insights about the IRS's ability to track crypto transactions through exchanges, so think twice before assuming your crypto is anonymous and safe! The episode highlighted the importance of keeping track of your transactions, especially if you're trading regularly, as neglecting this can lead to some serious tax headaches later on. Finally, we touched on the upcoming Defi Tax product, designed to help crypto users easily navigate their tax obligations without losing their minds or their money! Companies mentioned in this episode Coinbase Kraken Gemini Robinhood Moonpay Defi Tax For more updates on Defi Tax and crypto tax solutions, follow them on social media: Instagram, X, Facebook, LinkedIn: @DefiTax Website: DefiTax.us Stay connected with Money Talk with Tiff for more insightful episodes every Thursday. Visit MoneyTalkwithT.com and follow Tiff on all your favorite social media platforms @MoneyTalkWithT. Support this Podcast Copyright 2025 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

Crypto taxation falls into three main categories: short-term capital gains, long-term capital gains, and ordinary income.

Short-term gains (held under 1 year) are taxed at ordinary income rates ranging from 28% to 37%.

Long-term gains (held over 1 year and 1 day) are taxed at a flat 20% rate.

Mining, receiving crypto payments, and other earned crypto are taxed as ordinary income.

Every crypto transaction is reportable regardless of dollar amount.

Unlike traditional 1099 thresholds, there is no minimum dollar amount for crypto tax reporting.

Selling, trading, bridging, minting, and transferring NFTs all create taxable events.

Current crypto tax software produces wildly inconsistent results.

Janna tested 14 different platforms on a 300-transaction wallet and found variances of 10-35%.

Some tools reported a $25k gain while others reported a $351 loss for the same data.

Exchange-provided reports also differ significantly from independent calculations.

The IRS can and does track crypto transactions through exchanges and Chainalysis.

John Doe letters have been sent to Coinbase, Kraken, Gemini, Robinhood, and MoonPay.

Anyone who has ever completed KYC on an exchange is known to the IRS.

Hardware/cold wallets do not provide anonymity from IRS tracking.

DeFi Tax is launching as an audit-friendly solution built by tax professionals.

Product emphasizes immutable blockchain data and prevents user edits to transaction details.

Includes versions for individual traders, businesses, and accountants.

Soft launch begins mid-April for waitlist members at defitax.us.

Intro

Tiffany Grant welcomes Janna Scott to discuss the complex and often misunderstood world of cryptocurrency taxation on episode 373 of Money Talk with Tiff.

Janna Scott is a longtime tax professional and former government accountant who founded DeFi Tax after discovering major inconsistencies in existing crypto tax software.

Demystifying Cryptocurrency Taxes with Janna Scott | Ep. 373

Key Takeaways

Intro

– What Makes Crypto Taxable?

– Explaining Mining

– The Problem with Current Crypto Tax Tools

– Everything Is Reportable

– Introducing DeFi Tax

– IRS Tracking and John Doe Letters

Resources

Topics