Key Facts About Crypto Tax in California
California has the largest crypto investor base in the U.S. and the highest state rate at 13.3%. With FTB residency audits aggressive on high earners, accurate per-wallet crypto tax work is what separates a defensible return from a mess.
- California taxes crypto gains as ordinary income up to 13.3%, the highest in the U.S.
- California conforms to federal crypto tax treatment (cost basis, FIFO/specific-ID, gain classification).
- California offers no preferential long-term capital gains rate at the state level.
- The Franchise Tax Board (FTB) actively audits residency claims for high earners exiting the state.
- Rebuilding cost basis across exchanges, wallets, and DeFi is the highest-leverage step for a defensible California return.
- Count On Sheep delivers CPA-ready 8949, Schedule D, and Schedule 1 inputs, your CPA files, or you file with TurboTax.
Phone: (858) 434-7547
From Los Angeles to every metro in California
California crypto investors in Los Angeles, San Francisco, San Diego, Sacramento, San Jose and surrounding metros, served remotely from anywhere in the state.
California crypto investors face a unique double stack: federal capital gains plus the country's highest state rate at 13.3%, with an additional 1% surcharge over $1M. Residents from Los Angeles to San Francisco to San Diego deal with FTB residency audits, AB-150 PTET planning, and heightened scrutiny on reported gains. We pull every wallet, exchange, and DeFi protocol into one ledger, classify each event, and hand off CPA-ready 8949, Schedule D, and Schedule 1 inputs. Count On Sheep is your crypto tax professional in California. Your CPA stays your CPA. We handle the crypto side, they file with the state and IRS.
Keep your CPA. We do the crypto.
Your CPA handles your business return, your W-2, your K-1s, your real estate. We are the crypto tax professionals who handle the wallet, exchange, and DeFi side, for California residents and beyond.
Former Big 4 + CPA leadership
Our team came up inside Big 4 firms and CPA leadership roles, then went deep into crypto. Same audit-grade discipline that ran public-company engagements, applied to your wallet history.
USA-based, hands-on team
A senior crypto tax professional reviews every engagement. No offshore data-entry pipeline, no automated black box. Every edge case, basis split, and DeFi classification is handled by humans here.
We stay in our lane
We don't file your taxes. We don't replace your CPA. We do the part most CPAs and most software can't, the crypto. Then your CPA files, or you file with TurboTax.
How California treats crypto for tax
Federal Crypto Tax Treatment (applies in California)
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.
What we untangle for California crypto investors
Four steps, start to finish
From anywhere in California.
Connect
You connect read-only access to your exchanges and share wallet addresses. CSV exports work too.
Reconcile
We pull and reconcile every wallet, exchange, and DeFi interaction into one ledger with cost basis, holding period, and proceeds per lot.
Specialist Review
A senior crypto tax professional reviews edge cases. Manual basis splits, DeFi classifications, bridge events, restaking, NFTs.
CPA-Ready Reports
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.
Clean files, ready for your CPA
When the crypto tax work is done, you receive a tidy package: Form 8949 detail, Schedule D totals, Schedule 1 inputs for staking and airdrops, and the workpapers behind every number. That goes straight to your CPA, or into TurboTax.
Common questions, California edition
Does California treat crypto tax work differently from federal?
No, California conforms to federal cost-basis and capital-gains classification rules. The state stack is brutal because California taxes short and long-term gains at the same ordinary rates up to 13.3%, with a 1% mental-health surcharge over $1M. the crypto tax work is the same; the cost of getting it wrong is just much higher.
What's the California income tax rate on crypto gains?
California's top marginal income tax rate is 13.3%. 13.3% top marginal (10 brackets); 1% mental health surcharge on income >$1M. Crypto gains are reported as ordinary income or capital gains depending on holding period; California generally follows the federal characterization. Count On Sheep produces the federal 8949 and Schedule D inputs your CPA needs to complete the California return. We don't file the return ourselves.
Do you file my taxes?
No. That's deliberate. Count On Sheep is a team of crypto tax professionals. Former Big 4 and CPA leadership, now crypto-native blockchain tax experts. We produce CPA-ready 8949, Schedule D, and Schedule 1 inputs. Your CPA files. Or you file with TurboTax. Staying out of preparation keeps the engagement conflict-free and the audit trail clean.
Can my CPA use your reports?
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.
Does this work with TurboTax?
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.
How does a remote engagement work?
Everything is remote. We serve California residents from anywhere in the state. You grant read-only API access to your exchanges, share wallet addresses for on-chain history, and we handle the rest. No travel, no in-person meetings required.
What do I need to start?
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 from there.
How is the engagement priced?
First-time crypto tax engagements start at a $999 minimum. Larger or more complex engagements are scoped hourly at $500/hr after the initial call. All fees are quoted in writing before you commit.
About the Count On Sheep team
Count On Sheep is a USA-based team of crypto tax professionals. 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 California residents from Los Angeles, San Francisco, San Diego 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.
Ready to get your crypto tax handled and CPA-ready?
Book a free scoping call or call us directly. We serve California residents remotely.