Asset Transfers & Tax Planning
Is the first $5,000 of LLC formation costs tax deductible, and what other professional fees can be written off?
Last Updated: January 15, 2026LLC Formation Costs and Professional Fees: What You Can Actually Deduct The first $5,000 of LLC startup costs are generally deductible in the year you form the entity. That includes your formation expenses, initial legal fees, state filing costs, and...
What specific expenses can I write off through my digital asset LLC (hardware wallets, security devices, trading software, subscriptions, conferences, home office, portion of utilities/insurance, vehicles over 6,000 lbs under Section 179)?
Last Updated: January 15, 2026Tax Write-offs for Your Digital Asset LLC: The Complete List Your digital asset LLC can write off real business expenses. Not everything. Not personal stuff disguised as business costs. Actual expenses you incur running your investment operations. Here’s what qualifies...
How do DeFi activities, airdrops, yield farming, and liquidity pools get taxed, and what software helps track these complex transactions?
Last Updated: January 15, 2026DeFi Taxation: Every Transaction Counts and Tracking Is a Nightmare DeFi activities are taxable. All of them. Airdrops, yield farming, liquidity pools, staking rewards, governance tokens. The IRS treats every single interaction as either income or a capital gain depending...
Does every crypto-to-crypto swap trigger a tax event?
Last Updated: January 15, 2026Crypto-to-Crypto Swaps: Yes, Every Single One Is Taxable Every crypto-to-crypto swap triggers a taxable event in the United States. Every single one. You swap Bitcoin for Ethereum, that’s a taxable event. You trade Ethereum for Solana, taxable event. You convert...
Should I set up the LLC now or wait until after my assets appreciate in value? What are the risks of waiting?
Last Updated: January 16, 2026When to Set Up Your LLC: Before or After Your Assets Go Up in Value Set it up now. Before the appreciation happens. That’s the short answer, and the rest of this is just explaining why waiting creates problems you...
How do I transfer digital assets from personal wallets, exchanges, or retirement accounts (IRAs, 401ks) into an LLC or trust without triggering taxable events?
Last Updated: January 16, 2026Digital Asset Transfers: Moving Crypto Without Creating a Tax Mess Moving cryptocurrency and digital assets between wallets, accounts, and entities is where a lot of people accidentally create taxable events they didn’t see coming. The IRS treats crypto as property,...