Crypto Tax Workflow Base

Crypto Tax Workflow Base v1.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

What this file is

Universal workflow for cryptocurrency and digital asset tax compliance. Defines the classification framework, cost basis methods, transaction type taxonomy, and output format that every country-specific crypto tax skill builds on. No rates, no thresholds, no country-specific rules — those come from the country skill.

Must be loaded with at least one country-specific crypto tax skill (e.g., uk-crypto-tax.md, us-crypto-tax.md). This file alone cannot produce any output.

Step 1 — Onboarding: what to collect

Before computing anything, obtain ALL of the following:

If any of inputs 1-4 are missing, STOP and request them. Cannot compute without transaction history and cost basis.

Step 2 — Transaction type taxonomy

Every crypto transaction maps to exactly one of these types. The country skill determines the tax treatment of each.

Disposals (potential capital gain/loss)

Income events (ordinary income at FMV)

Non-taxable events (no gain/loss computed)

DeFi-specific events

Step 3 — Cost basis methods

The country skill specifies which methods are permitted. Universal definitions:

Conservative default: FIFO unless the country skill permits and the taxpayer has elected another method.

Cost basis tracking rules

1. Acquisition cost includes: purchase price + exchange fees + network gas fees + transfer fees
2. Crypto-to-crypto swaps create a NEW cost basis for the received asset at the FMV of the disposed asset
3. Staking/mining income establishes cost basis at the FMV on the date of receipt
4. Airdrops — if taxed as income at receipt, cost basis = FMV at receipt. If not taxed at receipt (e.g., unsolicited, zero-value), cost basis = zero
5. Hard forks — country-specific. Some jurisdictions assign zero basis, others use FMV at fork
6. All values must be converted to local fiat at the transaction date using a consistent exchange rate source (CoinGecko, CoinMarketCap, or the exchange's own reported price)

Step 4 — Gain/loss computation

For each disposal:

Gain or Loss = Proceeds (FMV in local fiat) − Cost Basis − Allowable Fees

Then apply the country skill's rules for:

• Holding period — short-term vs long-term (thresholds vary: 1 year US/UK, 0 for some, varies by country)
• Tax rate — capital gains rate vs ordinary income rate
• Exemptions — annual exempt amount, de minimis thresholds, personal use exemptions
• Loss offset — which gains can losses offset? Carry-forward rules?
• Wash sale / bed-and-breakfasting — anti-avoidance rules on repurchasing after a loss

Step 5 — Income computation

For each income event (mining, staking, airdrops, etc.):

Taxable Income = FMV at Receipt (in local fiat)

Country skill determines:

• Whether taxed as ordinary income, miscellaneous income, or a special category
• Whether business deductions apply (electricity for mining, hardware depreciation)
• Whether there's a de minimis threshold below which income is not taxable
• Self-employment tax / social contribution implications

Step 6 — Reporting obligations

Country skill specifies the forms, but universal requirements include:

Step 7 — Output specification

Produce these artifacts:

1. Crypto transaction ledger

For every transaction in the period:

2. Capital gains summary

3. Income summary

4. Reviewer brief

• Cost basis method used and justification
• Assumptions made (with conservative default disclosed)
• FMV source used for valuations
• Foreign exchange reporting obligations triggered
• Any wash sale / anti-avoidance flags
• Items requiring professional judgment

Conservative defaults

Self-checks (run before delivering)

1. Every disposal has a computed cost basis (no blanks)
2. Crypto-to-crypto swaps are treated as taxable disposals
3. Mining/staking income is recognized at FMV on receipt date
4. FMV source is consistent across all transactions
5. Cost basis method is the same for all disposals of the same asset (no cherry-picking without specific ID election)
6. Foreign exchange reporting threshold checked
7. Annual crypto/digital asset question answered correctly
8. Wash sale / anti-avoidance rules applied where applicable
9. Prior year loss carryforward applied if available
10. All amounts in local fiat currency
11. Gas fees allocated to correct transaction (disposal fee vs acquisition cost)
12. NFTs treated correctly (collectibles rate if applicable)

Refusals

Disclaimer

This workflow base and its outputs are for informational and computational purposes only and do not constitute tax, legal, or financial advice. Cryptocurrency taxation is rapidly evolving and many jurisdictions have unclear or changing rules. All outputs must be reviewed by a qualified professional before filing.

Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).