No surprises. Here is exactly when tax does and does not apply, and how Astra keeps you from overpaying.
Important: This page is general information, not tax advice. Tax rules for digital assets are evolving and some areas are unsettled. Everyone's situation is different. Please consult a qualified tax professional about yours.
You buy Bitcoin with money that has already been taxed in your paycheck. You owe no new tax when you contribute, and no tax while your Bitcoin simply grows in value. Tax is generally owed only when you sell for cash, and only on the gain. Astra keeps a detailed record of what you paid, so you are not overtaxed later.
You buy Bitcoin with post-tax pay. Buying is not taxable, and your U.S. dollar cost becomes your basis, recorded for every purchase.
Gains are unrealized while you hold. Nothing is owed on value you have not cashed in.
Sending Bitcoin to your own wallet is a transfer of your own property, generally not taxable. The 1:1 cbBTC unwrap is an unsettled area that most tax pros treat as non-taxable.
Selling for dollars is the taxable event. You owe capital gains on the gain over your basis. Held over a year is taxed at lower long-term rates.
New IRS rules have exchanges report your sales on Form 1099-DA. If Bitcoin that has been in self-custody is later sent back to an exchange and sold, the exchange often does not know what you originally paid, and may report your cost basis as $0.
A $0 basis makes the IRS treat your entire sale as profit, so you could be taxed on money you never gained, or taxed twice.
Astra keeps an accurate, per-purchase record of what you paid and when, and gives you that data in a format you can import into popular crypto tax software such as CoinTracker, CoinLedger, or Koinly, and use to complete IRS Form 8949 correctly. That lets you override a wrong $0 basis and pay tax only on your real gain.
Keep a precise, per-lot record of your cost basis and dates. Hand you that data in a tax-software-ready format. Provide guides so you can file Form 8949 correctly. Point you to crypto-experienced tax partners.
File taxes for you. Withhold taxes on your Bitcoin. Give tax advice. For your specific situation, a qualified tax professional is the right call, and Astra makes sure you walk in with every number you need.
Your Astra purchase and basis statements (date, USD amount, and Bitcoin quantity per purchase).
Records of any transfer to a personal wallet (date, amount, destination address).
Your imported basis data, so any future sale reports your true gain rather than a $0 basis.
Tip: if you receive Bitcoin from payroll into a personal wallet, keep a wallet dedicated to it. It makes your records far easier to match.
That is what a tax professional is for, and Astra makes sure you walk in with all your numbers.
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