Crypto games and VR casino sessions move fast, but tax records can’t be an afterthought. The goal is simple: capture enough data per event to reconstruct cost basis, fair market value, and results without guesswork. Laws differ by country, so treat this as practical record-keeping guidance, not legal advice.
What to record for every event
Each buy-in, spin result, swap, or cash-out should leave a clean trail. Think “who, what, when, how much, and in what currency.” If you can’t answer those in seconds, your log is too thin.
Keep values in both crypto units and a home-currency snapshot at the time of the event. Note the wallet or exchange, network, and any fees. This lets you compute realized gains or losses later without re-scraping charts.
Minimum fields per line (quick list):
- Date/time (UTC) and session ID or table name.
- Asset and amount (e.g., 0.035 ETH) plus home-currency value at that timestamp.
- Event type (buy-in, spin win/loss, bonus, swap, deposit, withdrawal).
- Fees (gas, platform rake) recorded separately.
- Wallet/exchange identifiers and tx hash or reference number.
Cost basis, FMV, and realized results
Cost basis is what you paid for the crypto you stake, including fees. Fair market value (FMV) is its home-currency value at the moment you use or receive it. Realized gain or loss is the difference between FMV at disposal and your basis in the units you disposed.
Inventory method matters. Many regions allow methods like FIFO or specific-lot. Pick one allowed where you file and stick to it consistently. Consistency avoids selective cherry-picking that breaks audits.
| Event | Record This | Why It Matters |
|---|---|---|
| Buy-in with crypto | Units, basis incl. fees | Sets cost basis for units staked |
| Spin win paid in crypto | Units received + FMV | Establishes income at receipt time |
| Cash-out to fiat | Proceeds, fees, FMV | Triggers disposal; compute gain/loss |
| Crypto-to-crypto swap | Both sides’ FMV + fees | Often treated as disposal and acquisition |
| Gas/fees | Units + FMV at spend | Adjusts basis or becomes expense, per rules |
Classifying activity cleanly
Separate gameplay outcomes from funding and housekeeping moves. A deposit to a casino wallet is not a result; it’s a transfer. The spin outcome is the result. Clear labels prevent double counting.
Some jurisdictions treat gameplay outcomes differently from trading outcomes. You don’t decide that in the log; you just label events precisely so a professional can map them later. Good labels beat guesswork in April.
Session entries that hold up
Start each session with an opening balance by asset and an exchange rate snapshot. Record each result line with bet size, outcome, and fee. End with a closing balance and reconcile to the on-chain or platform statement.
Short notes help. If a bonus or promotion altered payouts, mark it. If latency or a disconnect forced a voided round, tag it. Context saves time when numbers don’t line up.
A workflow you can run every week
Create one ledger for raw events and another for summaries. The raw ledger is append-only; never edit historical rows, only add corrections with references. The summary sheet rolls up gains, losses, fees, and inventory by asset and by session.
Schedule a weekly reconciliation. Match ledger totals to platform statements and wallet explorers. Resolve gaps immediately, while details are fresh, instead of chasing months-old transactions.
Weekly checklist (simple and strict):
- Export platform statements and wallet histories; archive originals.
- Reconcile openings/closings for each asset; explain differences.
- Update cost basis lots and verify your chosen inventory method.
- Roll up realized vs unrealized by asset; tag outliers for review.
- Snapshot a year-to-date view for quick estimates and planning.
Pitfalls and safeguards
Mixing funds across wallets without notes erodes traceability. Label internal transfers clearly and record the FMV at transfer time if relevant in your region. Avoid “miscellaneous” buckets; they become audit magnets.
For swaps and bridge moves, fees can be meaningful. Record them as their own lines with units and FMV so they affect basis or expenses correctly. Small, separate lines beat one blobbed total.
Set hard rules for edits. If you discover an error, add a correcting entry with a reference to the original row; do not overwrite history. Auditability is about an explainable story, not a perfect one.