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Before you file yourself or hand anything to a CPA, the crypto activity has to be reconciled. That is how Michigan investors avoid duplicate disposals, unsupported basis, overstated gains, and preventable tax. Clean records improve accuracy, preserve legitimate deductions and losses, and let you reconcile each 1099-DA against the complete transaction history.
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Michigan crypto investors in Detroit, Grand Rapids, Ann Arbor, Lansing and surrounding metros throughout the state.
Michigan crypto investors in Detroit, Grand Rapids, Ann Arbor, and Warren face a flat state rate plus city add-ons in some metros. Auto-industry professionals with recent crypto adoption frequently need first-time multi-year crypto tax work. We pull every wallet, exchange, and DeFi protocol into one ledger and hand off CPA-ready 8949, Schedule D, and Schedule 1 inputs. Count On Sheep is your crypto tax service specialist serving Michigan. Your CPA stays your CPA. We produce the crypto inputs, they complete the filing.
Applies to every Michigan resident, on top of the state layer above.
Reportable on Form 8949, Schedule D, Schedule 1 (or Schedule C for mining as a trade or business). Count On Sheep produces these inputs from your complete on-chain history.
Michigan residents review digital asset reporting need a clear, accurate, and complete transaction history. For digital asset reporting in Michigan, the foundational work is a federally compliant record of every crypto event. Count On Sheep delivers this essential evidence. We perform Digital Asset Reconciliation, abbreviated as DAR, to create a verified ledger of your trades, swaps, and transfers. This process provides your CPA with the data needed to prepare federal and Michigan tax returns, based on your verified transaction history.
The core of crypto tax obligations in Michigan is an accurate calculation of capital gains and losses at the federal level. Michigan's income tax, along with any applicable city taxes in places like Detroit or Grand Rapids, uses federal adjusted gross income as a starting point. An error in federal crypto calculations directly impacts state and city tax returns. Our service focuses on building an auditable history of all digital asset transactions, from centralized exchanges to self-custody wallets and DeFi protocols.
The Michigan workpaper treats employee purchases funded from compensation or equity sales as an evidence issue. Exchange files, wallet history, broker statements, and supplied documents establish the record. A CPA applies current Michigan Treasury: Individual Income Tax instructions outside the DAR engagement.
Many Michigan investors find that tax reports from exchanges are insufficient. A common issue is Form 1099-DA, which often reports gross proceeds but leaves the cost basis field blank, especially if assets were transferred from another platform or a self-custody wallet. Relying on incomplete data can lead to an incorrect reporting of gains. Our service helps address this gap.
We work with available reports and other data. Our process involves tracing the original acquisition cost of your assets across their entire lifecycle. We reconstruct the journey of your crypto, from initial purchase on one exchange to its transfer and eventual sale on another. This helps establish accurate basis information for reporting actual gains. Accurate reporting is important for all tax obligations.
Consider a hypothetical scenario involving an automotive engineer living in the Detroit metro area. Over several years, she made recurring crypto purchases funded directly from her payroll. During this time, she moved from a suburb into the city of Detroit for a new role. She used multiple exchanges and later consolidated her holdings in a self-custody wallet before selling a portion to fund a down payment on a home. Her exchange reports show proceeds but lack the full cost basis history due to the transfers.
Michigan records for employee purchases funded from compensation or equity sales are separated from unrelated portfolio activity. Count On Sheep preserves the custody trail and form-ready inputs, while the CPA handles state rules, elections, residency facts, and filing decisions.
For investors in Ann Arbor, Lansing, and across the state engaging with decentralized finance (DeFi), the complexity increases. Activities like staking, liquidity provision, and using decentralized exchanges generate a high volume of transactions that are not tracked by any central party. These on-chain activities require accurate recording, with the fair market value of tokens captured at the time of each event to establish basis and income figures.
We work with on-chain data. We analyze your wallet history to identify every transaction, from simple swaps to interactions with smart contracts. By categorizing each event and valuing it, we build a ledger that combines with your activity from centralized exchanges. This provides a clear record for tax reporting.
A Michigan CPA reviewing city residence chronology needs traceable source records. Count On Sheep connects supported acquisitions, transfers, receipts, and dispositions, then lists open questions. The CPA decides the return treatment under current official instructions.
This historical data provides per-year Form 8949 details that your CPA can use to file amended returns or pursue a voluntary disclosure path. A reconciled history helps address past obligations and supports current-year filings. This supports accurate reporting.
Count On Sheep is not a CPA firm and we do not prepare or file tax returns. Our role is to provide a service for you and your tax professional. We translate digital asset transaction data into formats used for return preparation. We translate your raw transaction data into the standardized formats that CPAs require.
By handling DAR, your CPA can focus on applying Michigan-specific tax law, based on guidance from the Michigan Treasury, and preparing your returns. This approach supports supported return preparation. Current official instructions and the taxpayer's CPA control the return.
Form 1099-DA is part of crypto tax reporting, but it does not resolve all data challenges. As discussed, these forms will often have gaps in basis information. Digital Asset Reconciliation helps prepare for this environment. It provides a verified record of your transaction history to review or correct broker-reported information.
A verified ledger supports accurate reporting of gains and losses. This verification supports reporting and risk management. It organizes crypto records for annual financial reporting.
Michigan's individual income tax rate remains 4.25% for 2025. Consider a rate-only illustration: an exchange reports $90,000 of proceeds, while records from an older platform support $54,000 of basis. The corrected gain is $36,000, and 4.25% of that amount is $1,530. That is not a tax estimate because deductions, other income, residency, and return adjustments can change the result. It shows why recovering basis matters before the state calculation begins.
Count On Sheep traces the $54,000 through acquisition files, transfer hashes, and the final sale, then turns the supported disposition into Form 8949 detail and a Schedule D roll-up. The workpaper also identifies any amount that remains unsupported instead of filling the gap with an assumption. A Michigan CPA or self-filing client applies the state rate and all return-level rules. Count On Sheep performs Digital Asset Reconciliation, not tax preparation or advice.
Michigan's 2025 filing materials list a 2.4% Detroit resident rate and a 1.2% Detroit nonresident rate. Those two figures make status and sourcing important, but a wallet address cannot show where its owner lived or worked. A Detroit resident, a suburban resident working downtown, and a person who moved midyear can have different local-return facts even when their crypto activity is identical. The taxpayer's CPA decides whether and how a disposition enters a city return.
The useful record set therefore runs on parallel tracks. The DAR ledger supplies acquisition dates, disposal timestamps, proceeds, supported basis, and owned-wallet transfers. A separate residence file can hold leases, closing statements, payroll records, and move dates. Count On Sheep does not turn those documents into a Detroit tax conclusion. It gives the CPA a clean crypto chronology that can be compared with the client's independent city evidence during a video conference and in the final return workflow.
A useful Michigan file lets a reviewer move from a state return figure back to the federal schedule and then to the source transaction. For each disposal, the index should identify the asset, units, acquisition date, sale date, proceeds, basis source, and transaction identifier when available. Broker-reported proceeds should be tied to the same ledger without assuming that a blank or incorrect basis field is accurate. That path is more useful than a screenshot of an annual software total.
The reconciled handoff contains Schedule D and Schedule 1 inputs plus the supporting Form 8949 detail, with an exception list for unresolved items. If a number changes after missing records arrive, the revision log shows what changed and which schedules were affected. The Michigan CPA or self-filer controls any response, amendment, or return position. DAR supplies the transaction evidence and calculation trail, while the return owner applies Michigan Treasury instructions and communicates with the taxing authority.
Exchanges lose data, wallets get abandoned, chain history fragments. Reconstructing accurate cost basis across years of trading is the largest source of error on a crypto return.
Liquidity pool entries, yield farming, cross-chain bridges, wrapped tokens, restaking. Each creates taxable moments most consumer software misses or misclassifies.
Many crypto investors discover years of unreported trades after receiving an IRS letter. Back-year reconstruction and voluntary disclosure planning is part of what we deliver.
Detroit and other city income taxes adding 1-2.4% on top of the state flat rate
Auto-industry professionals with recent crypto adoption needing first-time historical crypto tax work
Reviewed September 2026. These first-party resources support the general federal and state information on this page. Your CPA applies the current instructions to your return; Count On Sheep supplies the reconciled crypto records and form-ready inputs.
Follow the Michigan service path into the national forms, basis, DeFi, and reconciliation guidance behind the local engagement.
See how Count On Sheep turns exchange, wallet, DeFi, NFT, and income activity into one CPA-ready reconciliation package.
Understand broker-reported proceeds, transferred assets, missing basis, and the records needed to reconcile the form.
Follow the evidence path from prior exchanges and self-custody wallets to supported Form 8949 basis.
Learn what to preserve for liquidity pools, staking, lending, bridges, NFTs, and related income or disposal events.
Review the Form 8949, Schedule D, income, cost-basis, and supporting workpapers delivered after reconciliation.
From anywhere in Michigan.
You connect read-only access to your exchanges and share wallet addresses. CSV exports work too.
We pull and reconcile every wallet, exchange, and DeFi interaction into one ledger with cost basis, holding period, and proceeds per lot.
A senior crypto tax service specialist reviews edge cases. Manual basis splits, DeFi classifications, bridge events, restaking, NFTs.
You get CPA-ready Form 8949, Schedule D, Schedule 1 inputs (and Schedule C for mining), plus full workpapers. Hand to your CPA, or load into TurboTax.
For Michigan, Count On Sheep performs Digital Asset Reconciliation. We rebuild exchange, wallet, broker, and DeFi activity into CPA-ready Form 8949, Schedule D, and Schedule 1 inputs. The Michigan CPA or the taxpayer's self-filing workflow handles the return itself.
No. Count On Sheep is not a CPA firm and does not prepare or file the Michigan return. We deliver the reconciled crypto schedules and supporting workpapers. The Michigan return preparer combines those records with wages, businesses, deductions, elections, residence facts, and every other part of the filing.
City residence chronology can change which source records a Michigan CPA needs. Count On Sheep traces the relevant Michigan transactions, preserves dates and ownership, and documents unsupported items rather than assigning a state tax conclusion without evidence.
A Michigan review of employee purchases funded from compensation or equity sales can require exchange exports, public wallet addresses, transaction identifiers, prior Form 8949 files, broker statements, and documents that explain ownership or purpose. Count On Sheep organizes the Michigan crypto evidence and flags anything the CPA must resolve.
The Michigan broker proceeds still need to be reconciled to the full ownership history. Count On Sheep traces assets through prior exchanges and self-custody, supports available basis and acquisition dates, and prepares a Michigan workpaper that connects the broker form to Form 8949 inputs.
The Michigan package contains transaction-level disposition detail, Schedule D summaries, digital-asset income inputs, transfer matching, closing lots, broker-form reconciliation, and documented exceptions. Each material Michigan number is tied to a source record or a clearly stated assumption.
Michigan meetings are held by video conference, which keeps scheduling fast for both sides. Documents move through a secure portal and are reviewed together on screen, so the full engagement happens without a trip to an office.
Yes. That is exactly the point. Our deliverable drops directly into the workflow your CPA already uses. Schedule D totals, 8949 detail, Schedule 1 inputs for staking and airdrops, and reconciliation workpapers behind every number.
Yes. If you self-file, the Count On Sheep deliverable plugs into TurboTax. You enter the 8949 totals (or import where supported), and our workpapers back up every line if you ever need to defend it.
Exchange account access or CSV exports, wallet addresses for every chain you have transacted on, any prior-year tax returns that touched crypto, and a brief on your DeFi activity. We scope Michigan engagements from there.
Book a meeting to walk us through your account. We will review the scope and provide a written quote before any work begins.
Count On Sheep is a USA-based team of crypto tax service specialists. Former Big 4 accountants and CPA leadership, now crypto-native blockchain tax experts. We do hands-on crypto tax work for high-volume investors, funds, founders, and active traders, including Michigan residents from Detroit, Grand Rapids, Ann Arbor and beyond.
We don't file taxes. We don't replace your CPA. Most CPAs don't do crypto, that's the gap we fill. We bridge DeFi and TradFi to produce the 8949, Schedule D, and Schedule 1 inputs your CPA can drop into your return.
