Crypto Tax

Reconcile, calculate, and file your crypto taxes inside Claude — FIFO/LIFO/HIFO lot matching, IRS Form 1099-DA discrepancy detection, and tax-optimal method selection.

MCP server (Model Context Protocol) that gives Claude IRS-grade crypto tax reasoning. Import a Koinly/CoinTracker/exchange CSV, point Claude at it, and ask: "What's my 2025 realized gain?" — Claude does the lot matching, splits short vs. long-term, and tells you which method saves the most.

Pairs with the companion Crypto Portfolio MCP.

License: MIT Transport: Streamable HTTP Node 20+

Why this exists

In January 2026 the IRS rolled out Form 1099-DA: brokers (Coinbase, Kraken, Robinhood, etc.) now report your crypto proceeds to the IRS — but they usually report $0 cost basis for any asset you transferred in from another exchange or wallet. The taxman sees "$50,000 in proceeds, $0 cost," panics, and assumes you owe tax on the entire $50K.

You don't. You owe tax on the actual gain — which only your full transaction history can prove.

This MCP gives Claude the reasoning to:

1. Import your transactions from Koinly, CoinTracker, Coinbase, Kraken, Binance, or any generic CSV
2. Calculate cost basis with FIFO / LIFO / HIFO — including auto-detected error states (negative balances, missing basis)
3. Compare your real numbers against the 1099-DA your broker mailed you, in plain language
4. Optimize — which method minimizes your tax liability this year?
5. Generate a Form 8949–compatible report your CPA can drop straight into TurboTax

All without leaving Claude. No spreadsheets. No 11-tab Notion docs.

Who it's for

Tools (10)

Example conversations

1. Import your Koinly export

You: (uploads koinly-2025.csv to Claude) "Import this — it's my Koinly export for 2025."

Claude calls: import_transactions_csv({source: "koinly", csv_data: "<base64>"})

Claude: "Imported 412 transactions from Koinly. Found 4 duplicates against your existing records (skipped). 3 warnings — Polygon transactions on lines 87, 142, and 301 have no fee specified; assuming $0. Ready to calculate cost basis."

{
  "parser": "koinly",
  "rows_parsed": 416,
  "transactions_imported": 412,
  "skipped_duplicates": 4,
  "warnings": [
    "Line 87: missing fee — assumed $0",
    "Line 142: missing fee — assumed $0",
    "Line 301: missing fee — assumed $0"
  ],
  "errors": []
}

2. Add a single transaction by hand

You: "I earned 0.05 ETH from staking on June 1, 2025. Add it as income."

Claude calls: add_manual_transaction({type: "earn", coin_id: "ethereum", quantity: 0.05, date: "2025-06-01"}) — price_usd omitted → auto-fetched from CoinGecko historical.

Claude: "Added: 0.05 ETH earned June 1, 2025. CoinGecko historical price for that day: $3,820, so FMV = $191. That becomes ordinary income on your 2025 return, and your cost basis going forward is $3,820/ETH."

3. Calculate gains with FIFO

You: "Run FIFO on all my 2025 sells."

Claude calls: calculate_cost_basis({transactions: [...all stored txs], method: "fifo", tax_year: 2025}) then surfaces the summary.

Claude: "2025 FIFO results:

• Total realized gain: +$48,200
• Short-term: +$12,400 (taxed as ordinary income — ouch)
• Long-term: +$35,800 (capital gains rates)
• 87 sell transactions matched. Confidence: 96%.

2 missing-basis warnings — you sold 0.3 BTC from an exchange we don't have purchase records for. Want me to flag those for resolution?"

4. Should I use LIFO or HIFO instead?

You: "What method saves the most tax?"

Claude calls: optimize_cost_basis_method({transactions: [...], include_methods: ["fifo", "lifo", "hifo"]})

Claude: "HIFO saves you the most. Comparison at 37% short-term / 20% long-term rates:

Method	Realized gain	Tax owed
FIFO	$48,200	$11,750
LIFO	$39,100	$9,400
HIFO	$31,800	$8,090

Switching to HIFO saves you $3,660 on this year's return. Note: the IRS allows method choice but you must apply it consistently — talk to your CPA before switching mid-stream."

5. Find tax-impact errors

You: "Are there any issues before I file?"

Claude calls: detect_errors_and_explain({transactions: [...all]})

Claude: "Found 1 error:

🚨 NEGATIVE_BALANCE: SOL on April 11, 2025 — you sold 18.4 SOL but the records only show 12.1 SOL in. You likely have a missing transfer-in from another exchange or wallet.

Fix: Import the missing 6.3 SOL purchase/transfer. Common sources: a CEX you forgot, a Phantom wallet, an airdrop, or a swap you didn't catalog. Once added, re-run calculate_cost_basis.

Confidence: 80% — bring this to 100% before filing."

6. Reconcile against your 1099-DA ⭐ (Tax tier)

You: "Coinbase sent me a 1099-DA showing $52,000 proceeds and $0 basis for 2025. I think it's wrong. Can you check?"

Claude calls: compare_1099da({exchange: "Coinbase", year: 2025, reported_proceeds_usd: 52000, reported_basis_usd: 0})

Claude: "Coinbase's 1099-DA reports $52,000 in proceeds with $0 basis — but 38 of your Coinbase sells were assets you originally bought on Kraken ($28,400 cost basis) and moved into Coinbase before selling.

Your real gain on Coinbase 2025 activity:

• Proceeds: $52,000 ✅ (matches 1099-DA)
• Real cost basis: $36,200 (Coinbase can't see the Kraken purchases)
• Real gain: $15,800 (not $52,000)

Discrepancy: Coinbase will report $52K to the IRS as taxable gain. You owe tax on $15.8K.

Audit risk: Medium. The IRS will see the mismatch. File Form 8949 with Box C checked (basis not reported to IRS) and attach a brief reconciliation note. We can generate that report next."

7. Browse what's stored

You: "Show me all my BTC sells in 2025."

Claude calls: get_transactions({year: 2025, type: "sell", coin_id: "bitcoin"})

Claude: "12 BTC sells in 2025 (total of stored: 412 transactions). Most recent first:

• 2025-12-18: −0.1 BTC @ $98,200 on Coinbase ($9,820 proceeds, fee $4.50)
• 2025-11-04: −0.05 BTC @ $76,800 on Kraken ($3,840 proceeds, fee $2.00)
• 2025-09-22: −0.2 BTC @ $58,400 on Coinbase ($11,680 proceeds, fee $5.80)
• … (showing 50 of 12; want to filter further?)"

8. Year-end summary

You: "Quick 2025 realized gains summary."

Claude calls: get_realized_gains({year: 2025, method: "fifo"})

Claude: "2025 realized gains (FIFO):

• Total realized gain: $48,200
• Short-term: $12,400 (87 lots) — taxed at ordinary income rates
• Long-term: $35,800 (43 lots) — taxed at LTCG rates

By coin:

• BTC: +$31,200 (12 lots)
• ETH: +$8,400 (28 lots)
• SOL: +$5,100 (44 lots)
• LINK: +$2,800 (18 lots)
• DOGE: +$700 (28 lots)"

9. Export Form 8949

You: "Give me a CSV my CPA can plug into TurboTax."

Claude calls: generate_tax_report({format: "csv", tax_year: 2025, include_audit_trail: true})

Claude: "Generated. The report has 130 line items (matching 130 sell lots). Top of file:

Coin, Buy Date, Sell Date, Quantity, Proceeds, Cost Basis, Gain/Loss, Holding Period
bitcoin, 2023-09-12, 2025-03-04, 0.08, 5760.00, 2080.00, 3680.00, long-term
bitcoin, 2023-09-12, 2025-04-15, 0.10, 7340.00, 2600.00, 4740.00, long-term
...

Audit trail attached — each line shows which buy lot was matched to which sell, using FIFO. Drop into TurboTax or send to your CPA."

10. Bring-your-own 1099-DA CSV

You: "I have the 1099-DA Kraken sent me as a CSV. Reconcile against my numbers."

Claude calls: reconcile_with_1099da({calculated_basis: <prev_result>, form_1099da_csv: "<base64>", tolerance_percent: 5})

Claude: "Compared 23 reported lines against your calculated basis (5% tolerance):

• ✅ 19 matched within tolerance
• ⚠️ 3 mismatches — Kraken reports $0 basis where you have $1,400 / $3,200 / $890 (these were transferred in from Binance)
• 🚨 1 missing — Kraken reports a SOL sell you don't have. Did you delete a transaction by mistake?

Not ready to file until the missing tx is resolved. Want me to walk you through finding it?"

Pricing tiers

The Tax tier exists for one reason: the plain-language broker reconciliation that explains the gap between your 1099-DA and reality. Worth $49/mo for one filing season, easily.

Stack

• Runtime: Node.js 20, TypeScript
• MCP SDK: @modelcontextprotocol/sdk (Streamable HTTP, stateless per-request)
• Framework: Express + Zod schemas
• Prices: CoinGecko Demo API (historical FMV for any past date)
• Storage: SQLite via better-sqlite3 (transactions, cost lots, realized gains)
• Parsers: Koinly, CoinTracker, Coinbase, Kraken, Binance + generic CSV with auto-detect
• Billing: Polar.sh webhook → tier upgrade (optional; works without)
• Auth: Bearer API key + MCPize upstream proxy passthrough

CSV format support

Auto-detected from the header row when source: "manual" is passed, or specify explicitly:

CSV must be base64-encoded when passed as csv_data — Claude does this automatically.

Development

git clone https://github.com/biggling/crypto-tax-mcp.git
cd crypto-tax-mcp
npm install

cp .env.example .env
# Edit .env — set COINGECKO_API_KEY

npm run dev               # watch mode
# or
npm run build && npm start # production

Environment variables

Architecture

Claude AI (or MCPize gateway)
       │  HTTPS  Bearer <key>
       ▼
nginx reverse proxy
       │  :3001
       ▼
crypto-tax-mcp (Node.js / Express)
       ├─► SQLite  ──  transactions, lots, realized_gains, polar_subscriptions
       ├─► CoinGecko  ──  historical FMV (cached)
       └─► Polar.sh webhook /webhooks/polar (HMAC-verified)

Stateless MCP

Each POST /mcp creates a fresh McpServer instance scoped to the authenticated user — no session state to manage, horizontally scalable, safe behind any load balancer.

Cost basis engine

Pure-function FIFO/LIFO/HIFO matcher in src/cost_basis.ts. Same input → same output, always. Lot matching is deterministic so reports are reproducible audit-defensibly: you can hand a CPA the input CSV and get the same gain numbers.

Disclaimer

This MCP returns tax calculations — it is not tax advice. For high-value or complex returns, work with a qualified CPA. The 1099-DA reconciliation tool flags discrepancies and suggests Form 8949 box choices; the actual filing decision is yours.

License

MIT.