LWT Services, LLC

LWT Services, LLCLWT Services, LLCLWT Services, LLC

LWT Services, LLC

LWT Services, LLCLWT Services, LLCLWT Services, LLC
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Digital Asset Tax Preparation - FAQ

The Basics

Do I owe taxes on my crypto?

Possibly. The IRS treats digital assets as property, so selling crypto, trading one coin for another, or spending it can create a taxable gain or loss. Receiving crypto as payment, or from staking, mining or airdrops, is generally taxed as income. Buying crypto with dollars and holding it is not a taxable event on its own.

I only bought and held. Do I still need this?

Probably not for this year, but you still need to answer the digital asset question on Form 1040. If you moved coins between wallets or exchanges, it helps to have records showing those were transfers, not sales.

I lost money on crypto. Why would I report it?

Losses can work in your favor. They can offset your gains, and some of what’s left over can reduce your other taxable income. Unreported losses are a benefit you leave on the table.

I received a Form 1099-DA. Isn’t that enough?

Often not. Brokers began issuing Form 1099-DA for 2025 transactions, and it reports what you sold for. It frequently doesn’t show what you originally paid, especially if you moved coins from another exchange or wallet. Without that cost basis, you could be taxed on the full sale amount instead of your actual gain. We fill in that missing piece.

Working With Us

What do I need to send you?

  • Transaction history exports (CSV files) from each exchange you’ve used
  • Public wallet addresses for any self-custody wallets
  • Any 1099 forms you’ve received
  • A copy of last year’s return, if available

Will you ever ask for my private keys or seed phrase?

Never. We only need your public wallet addresses, which show transaction history but can’t move funds. Anyone asking for your seed phrase or private keys, including someone claiming to be us, is attempting to steal your assets.

I used a lot of wallets, chains, or DeFi protocols. Can you handle that?

Yes. Researching on-chain activity is our specialty: swaps, liquidity pools, staking, bridges, airdrops and more. More complex histories take more time, and our billing reflects that.

My records are incomplete, or an exchange I used has shut down.

That’s common. Blockchain transactions are permanent and public, so much of your history can be rebuilt from your wallet addresses even when an exchange’s records are gone. We’ll tell you what we can recover and flag anything we can’t.

Can you help with prior years?

Yes. If you have unreported activity from past years, we can organize those records too. Your tax professional can advise whether an amended return makes sense.

I don’t live in the US. Can you help?

Yes. For non-US clients, we provide a unified ledger of all your entries that your local tax professional can work from.

Results & Next Steps

What will I receive?

A transaction-by-transaction labeled record of your activity, completed crypto tax forms (Form 8949 and Schedule D), and a summary for your Schedule 1 or Schedule C reflecting the income for crypto you received, such as yield income, staking rewards, and airdrops. Everything is ready to hand to your CPA or tax preparer. Non-US clients receive a unified ledger.

Do I have to use your CPA?

No. We prepare your crypto tax forms for whichever CPA or tax preparer you already use, and we’re happy to work with them directly.

How long does it take?

Most reports are ready within 1–2 weeks after we receive your records. Larger or more complex histories take longer, so reach out early, well before the filing deadline.

How much does it cost?

Our billing is simple: you pay only for the time it takes to produce your reports. Contact us for a competitive quote based on your activity.

What if my CPA has questions about the report?

We’ll answer them. Follow-up support is included.

How do I get started?

Click Get Started to fill out our inquiry form. We’ll review your situation and let you know what to send.

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