How Crypto Is Taxed in Florida

The IRS treats cryptocurrency as property, not currency. That means every time you sell, trade, or use crypto to buy something, you trigger a taxable event. If the asset appreciated since you acquired it, you have a capital gain. If it dropped, you might have a deductible loss. This applies whether you’re trading Bitcoin on Coinbase or swapping tokens on a decentralized exchange.

Florida’s lack of a state income tax is a genuine advantage here. In states like California or New York, crypto gains get taxed at both the federal and state level. In Miami, you’re only dealing with federal capital gains rates — 0%, 15%, or 20% for long-term holdings, and ordinary income rates for short-term. That said, the reporting requirements are still extensive, and missing transactions on your Form 1040 is one of the fastest ways to get an IRS notice.

Crypto Tax Services

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  Transaction Reconciliation — Importing data from exchanges, wallets, and DeFi protocols to build a complete picture of your crypto activity for the year.
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  Cost Basis Tracking — Calculating your cost basis for every asset using FIFO, LIFO, or specific identification methods, depending on what produces the best result.
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  DeFi & Staking Income — Reporting yield farming rewards, staking income, liquidity pool returns, and airdrop receipts as ordinary income at fair market value.
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  NFT Transactions — Tracking purchases, sales, and royalty income from non-fungible tokens, including proper classification as collectibles when applicable.
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  Mining & Validator Income — Reporting mining rewards and validator income as self-employment income, including applicable SE tax calculations.
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  Tax-Loss Harvesting — Identifying opportunities to realize losses on underperforming assets to offset gains elsewhere in your portfolio.

Sources & References

• IRS Form 1040 Instructions
• 26 U.S.C. § 1 — Tax Imposed
• Florida Department of Revenue