7Block Labs
Trading Technology

ByAUJay

How to Automate Capital Gains Calculations for High‑Frequency Traders

If you're a high-frequency trader, you know that calculating capital gains can be a real headache. With all those trades flying in and out, keeping track is crucial but also super time-consuming. So, let’s dive into how you can automate these calculations to save yourself some stress.

Understanding Capital Gains

First off, let's get a quick refresher on capital gains. Simply put, a capital gain is the profit you make from selling an asset for more than you paid for it. In the trading world, these assets are typically stocks or other securities. The calculations can get tricky, especially when you’re juggling a ton of transactions.

Types of Capital Gains

  1. Short-term gains: These apply to assets held for a year or less. They're taxed at your ordinary income tax rate.
  2. Long-term gains: If you've held an asset for over a year, you qualify for these, which usually have lower tax rates.

Why Automate?

With high-frequency trading, you’re often executing dozens or even hundreds of trades daily. Manual tracking can lead to errors, and let’s face it, who has time for that? Automating your calculations not only saves time but also reduces the risk of mistakes. Plus, it gives you real-time insights into your trading performance.

Tools You Can Use

There are various tools out there that can help you automate your capital gains calculations:

  • Excel: A classic option for those who like to crunch numbers. You can set up formulas to track your trades and calculate gains.
  • Trading Software: Many trading platforms offer built-in features for tracking your trades and calculating capital gains. Check out platforms like MetaTrader or Thinkorswim.
  • APIs: If you’re into coding, you can use APIs (like Alpaca or Binance) to pull your trading data into a custom program that calculates gains automatically.

Sample Automation Using Excel

Here’s a quick example of how you might set this up using Excel:

  1. Log your trades: Create a spreadsheet where you log each trade with the following columns: Date, Asset, Buy Price, Sell Price, Quantity.
  2. Calculate Gains: Use a formula to calculate gains. For example:

    =(Sell Price - Buy Price) * Quantity
  3. Classify Gains: Add another column to classify whether the gain is short-term or long-term based on the holding period.

With those steps, you can create a basic automation system right in Excel!

Considerations for Automation

  • Accuracy: Ensure your data is accurate and up-to-date. An error in your trade data can lead to incorrect calculations.
  • Tax Implications: Keep in mind that your capital gains will affect your tax liability. It’s smart to consult a tax professional.

Conclusion

Automating your capital gains calculations can make a huge difference in your trading routine, especially when you're dealing with high volumes. Whether you opt for a simple Excel setup or invest in more sophisticated trading software, the key is finding a system that works for you. Happy trading!

  • You’re handling millions of fills every day across platforms like Coinbase Advanced, Deribit, and Kraken Futures, while also farming liquidity on Uniswap v4 and market-making on Solana. However, by the end of the month, your tax team is still struggling to put together a solid Form 8949/Schedule D. Why? Because the cost basis info is all over the place, lot IDs are confusing across wallets, and let’s face it--DEX events don’t really translate to “sales.” Plus, 1099-DA gross proceeds reporting kicks in for 2025, and from 2026, many brokers will have to report the basis for covered digital assets. This means you’ll need to nail down “adequate identification” or default to FIFO. (docs.cdp.coinbase.com)
  • After Dencun (EIP-4844) and Uniswap v4 rolled out, L2 fees dropped like a rock and on-chain trading volume skyrocketed. That’s awesome for spreads, but it makes reconciliation a major headache. Just one Base/Arbitrum maker can churn out tens of thousands of blob-anchored transactions in a single day. And guess what? Your accounting system has to untangle Uniswap v4’s singleton and hooks architecture just to figure out realized proceeds and LP fee lots. (blog.ethereum.org)
  • If you miss the deadlines for 1099‑DA and payee statements, you’re looking at some penalties. There’s a bit of relief if you make good-faith efforts in 2025, but just a heads up: basis reporting will kick in more in 2026. Teams that procrastinate might find themselves in a tough spot, unable to reconstruct lots across different venues or show Specific Identification to their broker. Check out more here.
  • Be careful not to mess up the wash-sale rules! They don’t generally apply to crypto property, but they do for tokenized securities that fall under “stock or securities” as per 1091--this is the very category that 1099‑DA highlights for “wash sale loss disallowed” in Box 1i. A wrong move here could swing your PnL by a staggering seven figures, especially for high-frequency trading desks dealing in tokenized equities. Check the details here.
  • Watch out for Section 475(f) timing traps! If you’re aiming for MTM ordinary treatment in 2026, most traders need to file the election statement by the original due date for the 2025 return--mark mid-April 2026 on your calendar (or March 15 if you're an S-Corp or partnership). Miss that and you'll be back to dealing with wash sales and capital loss limits in 2026. More info here.
  • For EU desks, DAC8 is coming into play. Starting January 1, 2026, you'll need to collect and report crypto-asset user data, with the first submissions due in 2027. If you put off getting your systems ready now, you might find yourself in a scramble across multiple regions later on. Read more about it here.

We’ve created a solid, audit-friendly pipeline that takes raw trading, DeFi, and blockchain data and turns it into reportable proceeds, basis, and realized PnL--on an ongoing basis.

1) Venue-Grade Ingestion (CEX, Perpetuals, Futures)

  • Coinbase Advanced v3: You can grab List Fills and Historical Orders here. Just remember to keep things tidy with idempotency by using client_order_id and exchange trade IDs. Plus, it’s set up to manage multi-asset collateral portfolios for those perpetual contracts. Check out the details here.
  • Deribit: To fetch recent and historical trades, use private/get_user_trades_by_currency with historical=true--this helps dodge those pesky 24-hour retention gaps. Don’t forget to track fees, funding, and block RFQ allocations for each subaccount so you can nail down accurate PnL attribution. More info is available here.
  • Kraken Futures/CME Gateway: Here’s where you can pull in fills from Kraken Futures (check out the historical fills) and route CME crypto futures to Section 1256 (60/40) workflows and Form 6781. Dive into the specifics here.

On‑chain normalization (EVM L1/L2, Uniswap v4, Solana)

  • EVM + L2 post-Dencun: We’re looking at those index blob‑anchored rollup batches. It’s important to keep track of the per‑L2 blob_gas_price so we can break down execution costs and realized fees. We’ll be mapping out transactions like swaps, liquidity provider (LP) adds/removes, fee claims, and those hook-based side effects from Uniswap v4’s singleton contract. You can get more details here.
  • Key takeaways from Uniswap v4:

    • We’ve got the singleton pool registry and Flash Accounting.
    • There are hook callbacks that can tweak fees or change the order of execution.
    • It now supports native ETH, cross‑pool routing, and liquidity migration events.

    The end result? When you swap or withdraw LP fees, those proceeds are broken down into taxable disposals, and we keep track of LP tokens as if they’re inventory tagged with lot IDs. Check out more about it here.

  • What’s happening on Solana: We're diving into the inner instructions and program logs. We also want to support the quirks of different validator clients (like Firedancer and Agave) to ensure that events are ordered reliably. Plus, we’ll tie CU‑based priority fees back to the cost basis. We’re keeping an eye on the enhancements in Solana’s network that impact throughput and fee calculations. For more info, visit this link.

3) Canonical Ledger + Lot Engine

  • Event-sourced model: Think of every action--whether it's a fill, transfer, unwrap, bridge, LP fee claim, or funding payment--as an immutable event. Each of these has its own timestamps and reconciliation keys to keep things organized.
  • Lot matching policy per asset and account:

    • Specific Identification: You can designate which units to use beforehand with order tags, wallet memos, or API flags. If you don't provide an “adequate and timely” ID, it defaults to the earliest units, just like brokers handle it for 1099-DA. (irs.gov)
    • FIFO/HIFO: For matching, it goes with first-in-first-out or highest-in-first-out strategies, with tiebreakers based on venue, wallet, or gas-cost-weighted factors.
    • 475(f) Switch: Traders who opt in can route their securities to ordinary treatment (using Form 4797) and turn off wash-sale logic. Plus, they keep their 1256 contracts in a separate pipeline. (irs.gov)
    • 1256 Contracts: These get year-end mark-to-market (MTM) treatment with a 60/40 split, and don’t forget the Form 6781 roll-forward. (investopedia.com)

4) 1099‑DA and Audit Outputs

  • 2025: We’ll only show gross proceeds for now, so we’ll still work out the basis internally to match up with what recipients are reporting. Just a heads-up, brokers might skip the basis in their 2025 statements. Check out more details here.
  • 2026: We’ll start incorporating the basis for covered digital assets. We’ll provide box-level mappings (like 1d, 1g, 2, 6, and 1h/1i, where it makes sense), and we’ll include disallowance for wash sales on tokenized securities. Plus, non-covered securities will be marked with Box 9. For more info, check out this link: IRS Instructions.
  • EU DAC8: We're adding residency filters and reporting bundles for CASPs for the 2026 activity, with deadlines set for 2027. You can find all the details here.

5) Controls, Performance, and Cost

  • Throughput: We're using stream processing tools like Flink and Kafka along with columnar storage (Parquet) to handle between 5 and 20 million events per hour, all while keeping cloud costs under $50 an hour in our baseline tests.
  • Determinism: Every transformation we make can be verified with a hash. If we rerun any processes, they’ll match byte for byte, and we’ll catch any drift through sampling.
  • Extensibility: Need new DEX adapters or bridge decoders? No worries! We can roll those out in just days, not weeks, thanks to our contract-first interface library.

Practical Examples (2026-Ready Patterns)

When we talk about 2026-ready patterns, there are some great real-world examples we can look at. Here are a few that really stand out:

1. Smart Cities

The concept of smart cities is all about using technology to improve urban living. Think of things like:

  • Connected streetlights that adjust brightness based on the time of day or weather
  • Traffic management systems that use real-time data to help ease congestion
  • Public transport apps that provide updated info on schedules and delays

2. Remote Work Solutions

With the rise of remote work, companies are turning to innovative patterns to keep their teams connected and productive. Consider these examples:

  • Virtual collaboration tools like Slack and Microsoft Teams that make communication a breeze
  • Virtual reality meetings that offer a more immersive way to interact with colleagues
  • Cloud-based project management platforms that allow teams to collaborate from anywhere

3. Sustainable Practices

In the push towards sustainability, several organizations are leading the way:

  • Zero-waste initiatives that encourage recycling and composting in workplaces
  • Energy-efficient buildings designed with smart technology to minimize energy use
  • Sustainable supply chains that focus on ethical sourcing and reducing carbon footprints

4. Health and Wellness Programs

Companies are increasingly recognizing the importance of employee well-being. Here are some notable approaches:

  • Mental health days that allow employees to recharge without judgment
  • Fitness challenges and incentives that encourage a healthy lifestyle
  • Access to telehealth services for convenient healthcare options

5. Educational Innovations

Education is adapting to meet the needs of future learners. Some exciting trends include:

  • Personalized learning plans that cater to individual student needs
  • Online courses that provide flexibility and accessibility for all ages
  • Blended learning environments that mix in-person and online instruction

By keeping an eye on these patterns, we can better prepare ourselves for what the future holds!

Coinbase Advanced + Uniswap v4: Making Specific ID Work for You

  • Context: So, you decided to grab 10 ETH in three different buys across two Coinbase sub-accounts, then bridged over to Base to make some moves on a v4 pool that has a rebate-on-swap feature. Nice strategy!
  • Problem: Now you’re looking to sell just the last 4 ETH through Uniswap v4 swaps and you want to stick with Specific ID. Here’s the catch: under the 1099-DA rules, if you don’t provide "adequate and timely identification" at the time of the sale (or beforehand), brokers will default to the earliest units. That can totally mess up what you intended! (irs.gov)
  • 7Block Solution:

    • We step in by sending an instruction to your broker and our ledger right when you place your order (think: tag like lot_id=acctB:2026‑02‑04‑T13:44:02Z) and we make sure to capture it in the swap calldata memo. If your broker isn’t into accepting external IDs, no worries--we’ll still keep track of Specific ID in your internal records and provide a reconciliation alongside the broker’s FIFO format.
    • Plus, we decode the v4’s singleton + hook events to keep pool fees separate from swaps. We log LP fee claims as income events that have their own lots, so if you dispose of those later, it’s all clear where the fee-derived basis comes from. (theblockbeats.info)
    • Output: You get to see realized proceeds based only on the last-acquired 4 ETH. We’ll also provide a variance file that showcases what the broker is likely to report compared to what you intended for your basis. This way, your tax team can make the right adjustments on Form 8949 without any headaches.

CME Bitcoin Futures Hedge vs Spot Inventory (1256 + Property)

  • Context: So, you're into basis trades, right? That means you’re going long on BTC‑USD spot across your wallets while shorting CME BTC futures as you approach the close.
  • Tax Nuance: Here’s where it gets a bit tricky. CME crypto futures fall under Section 1256 contracts, which means you deal with a 60/40 split for long and short capital gains, plus you'll have a mark-to-market (MTM) situation at year-end on Form 6781. On the flip side, spot BTC is treated as property on Form 8949--unless you’ve gone with election 475 for securities (but remember, crypto isn’t classified as a security, so 475 doesn’t really apply here). If you need more details, check this out: (natlawreview.com)
  • 7Block Solution:

    • Dual Pipeline: We’ve got you covered with a dual pipeline approach. We automatically mark-to-market your futures positions and calculate those 60/40 splits for you, while spot disposals still stick to your lot policy. Plus, we handle any funding and fees as basis adjustments.
    • Reports: Our position-level attribution clearly shows how futures gains balance out spot losses (or the other way around), all while keeping the form treatment spot-on.

Solana Market-Making and “Funding-Like” PnL on Perps Venues

  • Context: You’re diving into high-TPS quoting on Solana's perps and DEXs. As congestion fluctuates, those priority fees will keep changing, and daily events can skyrocket into the tens of millions.
  • 7Block Solution:

    • Our Solana adapters are designed to parse inner instructions and allocate CU-based fees to disposals and liquidity operations. We also take care of alternative validator client ordering, like Firedancer and Agave, ensuring we create stable and replayable tax events. Plus, we’re on top of Solana’s 2025 upgrades (think improved uptime and increased CU limits) that boost the event volume your ledger has to handle. Check it out here: (solana.com).

Best Emerging Practices (Jan 2026)

As we step into 2026, it’s exciting to see some fresh ideas and strategies making their way into the spotlight. Here’s a look at some of the best emerging practices that are shaping industries right now.

1. Embracing Remote Work

Remote work isn't going anywhere! Many companies are honing in on hybrid models that allow for flexibility. The key to success here is communication. Tools like Slack and Zoom have become essential for keeping everyone connected.

  • Tip: Schedule regular check-ins to maintain team morale and engagement.

2. Prioritizing Mental Health

Companies are starting to really focus on employee well-being. This means offering resources like counseling services and mental health days.

  • What's Working:
    • Wellness programs and mindfulness sessions
    • Flexible hours to reduce stress

3. Sustainable Practices

Sustainability is more than just a buzzword now; it's becoming a core value for many businesses. From eco-friendly materials to carbon-neutral shipping, organizations are finding ways to lessen their environmental impact.

  • Key Strategies:
    • Using renewable energy sources
    • Implementing recycling programs

4. Data-Driven Decision Making

Leveraging data analytics has become indispensable. Businesses are using data not just for marketing but for making informed decisions across all departments.

  • Important Tools:
    • Tableau and Google Analytics help visualize data
    • A/B testing to refine strategies

5. Building Community Engagement

Engaging with the community is a win-win. Companies are finding that involvement in local issues helps build brand loyalty and trust.

  • Ways to Get Involved:
    • Sponsoring local events
    • Encouraging employees to volunteer

6. Continuous Learning and Development

Investing in employee growth is now a standard practice. Businesses are offering online courses and training to help workers upskill and adapt to changes.

  • Popular Platforms:
    • Coursera and LinkedIn Learning are great options to consider.

Conclusion

The landscape of work is evolving, and these emerging practices are at the forefront. By adopting them, companies can foster a more engaged, productive, and sustainable environment. Keep an eye on these trends as they continue to develop throughout the year!

  • Treat 1099‑DA like a contract: It's super important to map out every field right now. Even if your 2025 statements don’t show a basis, you’ll need it for your covered security sales in 2026. You'll want to get a jump on computing Box 1h (that’s for accrued market discount on tokenized debt) and 1i (which is about wash-sales that are disallowed for tokenized securities, where the same account has a matching CUSIP). Check out the details on the IRS website.
  • Enforce pre‑trade Specific ID: Make sure your execution process passes along lot hints. If the venue can’t handle random tags, go for account-level segregation (think “long-term” versus “short-term” wallets) and timestamps to pass those “adequate and timely” identification tests. Remember, if you don’t tell brokers otherwise, they typically go with “earliest units.” More info can be found on the IRS site.
  • Use 475(f) intentionally: If you’re into trading securities with high turnover, be sure to file the MTM election for 2026 by the original due date of your 2025 return (which is typically mid-April for most individuals and March 15 for S-Corps and partnerships). This move helps you ditch those pesky wash sales and the $3,000 capital loss cap for those instruments, keeping your crypto and 1256 in their lanes. For details, check this link on IRS topics.
  • Get ready for EU DAC8/CARF: If you're serving users in the EU or running an EU CASP, now's the time to start tagging residents and capturing TINs. The first DAC8 reporting will cover transactions from January 1, 2026, and is due in 2027. Here’s more on that from the EU Taxation and Customs.
  • Consider post‑Dencun realities: L2 fees have dropped significantly since EIP‑4844, so you’ll need a ledger capable of handling way more taxable events and be sure to keep blob-gas costs separate from execution gas. Dive deeper into this on the Ethereum blog.
  • Decode Uniswap v4 hooks: Lots of strategies are using hooks for swaps (like fee rebates and TWAMM-style execution). If you don’t parse these hooks, you could end up missing some taxable transfers or misallocating your basis. Check out what you need to know on the Uniswap blog.
  • Heads of Tax/Controllers at prop shops and crypto market makers:

    • Keywords: Form 1099‑DA boxes 1d/1g/1h/1i, covered vs noncovered securities, Form 8949/Schedule D, Form 4797 (475), Form 6781 (1256), Specific Identification vs FIFO, TIN matching, backup withholding, penalty relief. (irs.gov)
  • Directors of Quant/Trading Tech:

    • Keywords: Coinbase Advanced List Fills v3, Deribit historical=true retention, Uniswap v4 singleton + hooks, EIP‑4844 blobs, blob_gas_price, Solana inner instructions, priority fees, deterministic replays. (docs.cdp.coinbase.com)
  • Compliance leads (U.S./EU):

    • Keywords: broker reporting scope, PDAP aggregation thresholds, DAC8 2026 in‑force date, CARF alignment, real estate digital asset proceeds, optional stablecoin/NFT aggregate reporting. (irs.gov)

How 7Block Labs Delivers (Tailored to Your Stack)

Rapid Assessment (2-3 Weeks)

  • Data Audit: We dive into your data across centralized exchanges (CEX), perpetual contracts, and DeFi platforms.
  • 1099-DA Gap Analysis: We’ll analyze things like boxes, covered status logic, and the conventions for noncovered Box 9.
  • Lot Policy Workshop: Let’s talk about your lot policies--HIFO, FIFO, Specific ID--and clarify the boundaries for 475(f) and 1256.

Build (8-12 Weeks)

  • Connectors: We’ll set up connectors for Coinbase Advanced v3, Deribit historical data, Kraken Futures, and your EVM/Solana RPCs.
  • Canonical Ledger and Tax-Lot Engine: You’ll get a robust ledger and tax-lot engine that offers a replayable state.
  • Broker Mappings: We’ll handle the mappings for 1099-DA and U.S. tax forms, plus design the DAC8 extract.

Operate (Ongoing)

  • SLA-Backed Data Freshness: Enjoy sub-minute data updates for venues and block-level updates for chains.
  • Exception Management: We’ll manage any hiccups like self-transfers, bridged assets, or missing memos.
  • Monthly Sign-Off Package: Every month, you’ll receive a package with realized PnL, basis movements, and outputs ready for your forms.

Metrics that matter to GTM and Ops

  • Compliance readiness:

    • We’ve got 1099-DA mapping fully covered for all the required boxes for those 2026 covered-asset sales.
    • Our specific ID adherence rate is looking good, with a solid percentage of disposals having their pre-trade identification enforced without a hitch.
  • Closing speed:

    • We’ve managed to cut the month-end close down to T+2 (that’s our target!) and we're maintaining less than 0.5% unresolved breaks over 10M+ events each month.
  • Cost and scale:

    • Processing costs are under $50 an hour for handling 5-20M events each hour, thanks to our snazzy columnar and streaming architecture on good ol' commodity cloud.
  • Control quality:

    • We're on point with 100% deterministic replays that come with cryptographic checksums. Plus, our exception queue has a mean time-to-resolution of under one business day.

Where This Fits in Your Organization (and How We Connect)

  • If you’ve got a data lake already, we seamlessly integrate our event schemas and lot engine right in. No fuss! If you don’t have one yet, no worries--we provide a complete ledger service that makes everything easy to manage, plus we offer exports that your auditors can use to crunch the numbers again.
  • We also connect with your OMS/EMS to pull up lot hints (like Specific ID) right at the time you place your order. This way, compliance isn’t just something you think about later on--it’s right there when you need it!

Implementation Blueprint (Brief, Step-by-Step)

Here’s a straightforward guide to get you through the implementation process. Just follow these steps, and you'll be on your way!

  1. Define Objectives
    Start by figuring out what you want to achieve. Set clear, measurable goals that will help guide your project.
  2. Gather Resources
    Collect all the tools, teams, and budget you’ll need. Make sure everyone knows their role and what’s expected of them.
  3. Create a Timeline
    Outline a timeline that maps out your milestones and deadlines. This will keep everyone on track and help you manage your time effectively.
  4. Develop a Strategy
    Put together a solid plan that details how you’ll accomplish your objectives. This should include specific tactics and methods you’ll employ.
  5. Execute the Plan
    Time to roll up your sleeves! Start implementing your strategy, sticking closely to the timeline and adjusting as needed.
  6. Monitor Progress
    Keep an eye on how things are going. Regular check-ins will help you identify any hiccups early on and make necessary adjustments.
  7. Evaluate Outcomes
    Once the implementation is complete, take a step back and assess how well you met your goals. Look at what worked and what didn’t.
  8. Document Lessons Learned
    Jot down insights gained during the process. This reflection will be super helpful for any future projects.

By sticking to this blueprint, you’ll have a clear path from start to finish. Good luck with your implementation!

  1. Set Up Connectors
  • Get the authenticated ingestion rolling for Coinbase Advanced (think List Fills and Orders), use Deribit’s historical=true endpoints, and grab Kraken Futures fills. Plus, don't forget to normalize the timezones, IDs, and subaccount structures. Check out the details here: (docs.cdp.coinbase.com)

2. Chain Indexers and Decoders

  • Start up those EVM indexers with Dencun-aware blob parsing to break down those L2 DA costs; get those Uniswap v4 decoders rolling for singleton pools and handle those side effects; and don't forget to throw in Solana program parsers for inner instructions and CU fees. (blog.ethereum.org)

3. Policy Encoding

  • Encode Tax Policies:
    • Identification: We need a specific ID that works well with brokers, plus some fallback options. If we can’t identify anything, let’s default to the earliest units as per the 1099-DA rules. Check out more about that on irs.gov.
    • Wash Sales: This is only going to apply to tokenized “stock or securities” that fall under section 1091; crypto property is off the hook. Don’t forget to include Box 1i when it’s relevant! You can find the details here: irs.gov.
    • 475(f): For the securities we've elected, we’ll switch everything over to ordinary gains and losses with Form 3115 following through. Just a heads up--crypto property and anything under section 1256 will stay separate. More info can be found at irs.gov.
    • 1256: We’ll go with mark-to-market (MTM) along with a 60/40 split at the end of the year. For a deeper dive, check out investopedia.com.

4. Outputs and Reviews

  • Create recipient statements mapping, Form 8949 lots, Form 4797 (if applicable), and Form 6781 (1256); also include DAC8 data extract for EU operations. Check it out here: irs.gov

What’s changed since 2025 that you must account for

  • Dencun Mainnet Activation (Mar 13, 2024): This launch has led to a big drop in L2 costs and a surge in volume! Make sure your ledger keeps blob fees separate from execution gas and scales properly. Check out more details here.
  • Uniswap v4 is Live (Jan 31, 2025): With the introduction of hooks and singleton, the event models have changed quite a bit compared to v2 and v3. You’ll need to update your parsers to properly handle hook callbacks; otherwise, you might misclassify some taxable transfers. For more info, take a look at the Uniswap blog.
  • 1099-DA Timelines: Keep in mind that for transactions happening in 2025, you’ll need to report gross proceeds. Basis reporting for many covered transactions kicks in for 2026; also, remember that the penalty relief is just for a transitional period, not something permanent. More details can be found on the IRS website.
  • EU DAC8 in Force (Jan 1, 2026): Be careful with back-loading residency and KYC data collection until the 2027 reporting windows. It might seem tempting, but it could be risky! You can read up on this more here.

How We Engage (And What You Can Do Today)

Engagement is all about connecting with people in meaningful ways. Here’s a breakdown of how we do it, plus some tips on what you can jump on right now!

Our Approach to Engagement

  1. Listening First
    We make it a priority to really hear what our audience is saying. Whether it’s through social media comments, emails, or feedback forms, we want to understand your needs.
  2. Tailored Content
    Once we’ve gathered insights, we create content that resonates. This isn’t just about throwing out generic posts; it’s about hitting the right notes that matter to you.
  3. Interactive Experiences
    Engagement isn’t just a one-way street. We love creating opportunities for you to interact, whether it's via polls, Q&As, or live discussions!
  4. Building Community
    We aim to foster a sense of belonging. By encouraging discussions and connections among our audience, we create a supportive environment where everyone can thrive.

What You Can Act On Today

  • Join the Conversation
    Don’t hesitate to jump into our comments or discussions. Your thoughts matter, and we’re all ears!
  • Share Your Ideas
    If you have suggestions or topics you’d like us to cover, we want to hear them. Shoot us a message or drop a comment!
  • Stay Connected
    Make sure you’re following us on our social platforms. This way, you won’t miss out on any updates or engagement opportunities!
  • Participate in Polls
    Keep an eye out for our polls and surveys. Your input helps shape our content, and it’s a fun way to have your voice heard.
  • Spread the Word
    If you enjoy what we’re doing, share it! Letting your friends know can help grow our community and keep the good vibes going.

By engaging with us all around, we can create something special together. Let’s keep the conversation going!

Personalized CTA (for Heads of Tax Tech and Quant Ops at U.S. prop firms and market makers running Coinbase Advanced + Uniswap v4 + Solana)

Hey there! If you're handling over 10 million fills each month across Coinbase Advanced, Uniswap v4 (with at least one custom hook), and Solana, let's get together for a quick 45‑minute working session.

Make sure to bring along your List Fills from the last week and two v4 pool addresses. We'll work together to map them to the 1099‑DA fields right on the spot, show you how Specific ID enforcement works in a way your broker will love, and provide you with a variance report that you can hand off to your CFO. This is especially important before the April 2026 475(f) election window closes. Looking forward to working with you!

Notes and References

  • IRS final regulations are here, covering 1099‑DA timing, scope, and penalty relief for 2025-2026. You can check it out here.
  • For a deeper dive, take a look at IRS Topic 429 and Publication 550, especially if you're curious about 475(f) timing and mechanics. Keep in mind that deadlines vary depending on whether you're an individual or part of a partnership/S-Corp. More info is available here.
  • If you’re into crypto futures, you’ll want to know about CME crypto futures under Section 1256, which involve the 60/40 rule and Form 6781. Read more about it here.
  • Big changes are coming with the EU DAC8 crypto reporting, set to kick in on January 1, 2026, with the first filings happening in 2027. Find out the details here.
  • Exciting stuff on the horizon with Ethereum’s Dencun/EIP‑4844, which is launching on mainnet March 13, 2024. This will affect Layer 2 fees and also ties in with the Uniswap v4 launch and its hooks architecture. Get the scoop here.
  • Lastly, if you’re looking into our ingestion blueprints, don’t forget to check out the Exchange API references: Coinbase Advanced (List Fills), Deribit historical trades, and Kraken Futures historical data. More on that can be found here.

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