6 Ways to Pay Less Crypto Taxes with Awaken

If you're actively trading crypto & not using Awaken for crypto taxes, you’re probably leaving thousands of dollars on the table…

Awaken just made Solana, Base, Hyperliquid, Bitcoin, & Sui 100% free until March 31st.

Add your wallets & exchanges, generate tax reports, & track your portfolio. With more than 300,000 wallets, Awaken is crypto tax software that actually works.

Here are 6 more ways to save money on your crypto taxes with Awaken:

Tip 1: Use crypto tax software like Awaken

The number one way to save on crypto taxes is to use crypto tax software like Awaken .

If you’re still using a manual spreadsheet, it’s easy to mix up short vs long-term tax lots or miss deductions like gas fees.

But software like Awaken will import all your transactions, calculate your taxes, & even automatically label up to 90+% of your transactions for you.

Tip 2: Review notable transactions

It’s important to review your transactions for any discrepancies, because crypto tax software will sometimes miscategorize or not know how to handle certain types of transactions (i.e. staking or LPing).

Awaken makes it easy to filter transactions by those with income, highest capital gains, or missing cost basis, & their advanced automations result in an industry-leading 98% of cost basis found.

Tip 3: Long-term capital gains

Gains on crypto held for more than a year qualify for long-term capital gains, which get taxed at 20% max, vs as high as 37% for short-term gains.

For example, you could save $17,000 by waiting at least a year before realizing $100,000 in profit.

Awaken keeps track of when you purchased any crypto & makes it easy for you to optimize for long-term gains.

Tip 4: Tax-loss harvesting

Crypto losses can offset income or capital gains in the current year (& even roll forward to future years).

Plus, with no "wash sale rule” in crypto, after selling to claim the tax loss, you can immediately re-buy the position.

Awaken automatically analyzes your portfolio to find tax-loss harvesting opportunities for you - 100% free.

Tip 5: Donations or gifts

When you donate crypto, you avoid any capital gains on the asset (gifts too) but also receive a deduction for the current market value, for a double tax benefit.

For example, donating ETH you bought for $500 that's now worth $3,000 saves you $2,500 in capital gains, but also gives you a $3,000 deduction.

Use the “Donation” or “Gift” labels in Awaken.

Tip 6: Non-standard crypto tax positions with professional help

With only IRS guidance & no crypto tax legislation, crypto tax professionals can often recommend a non-standard crypto tax position for your particular situation.

Awaken has a directory of trusted CPAs to help (& if necessary, defend those positions in court).

Save time & money on your crypto taxes today.

If you’re looking for crypto tax software, try Awaken, crypto tax software that actually works, & saves you money.

Get started for free & grab your FREE transactions on Solana by March 31st.

P.S. if you read to the end, thank you! Email us (team at awaken dot tax) & we’ll drop you some bonus credit :)

Always consult with a qualified crypto tax professional before making significant financial decisions. Awaken can connect you with trusted crypto CPAs who understand these specialized strategies.

This post is commissioned by Awaken Tax and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.