Does North Dakota's 40% long-term capital gains exclusion apply to cryptocurrency?

Yes. North Dakota allows taxpayers to exclude 40% of net long-term capital gains from state taxable income. Because the IRS classifies cryptocurrency as property, long-term crypto gains (from assets held more than one year) generally qualify. Combined with North Dakota's top ordinary income rate of 2.5%, this means the effective state tax rate on long-held crypto can land near 1.5% — among the lowest in the United States. The exclusion is calculated on the smaller of net long-term gains or net long-term gains less net short-term losses, multiplied by 0.4. Proper basis tracking and holding-period documentation are essential to capture the full benefit. Chainwise CPA helps North Dakota crypto holders structure realizations to maximize this exclusion.

What are North Dakota's individual income tax rates for 2025?

For tax year 2025, North Dakota uses a three-bracket progressive system with rates of 0%, 1.95%, and 2.5% — among the lowest top rates of any state with an income tax. North Dakota also offers a 40% exclusion on long-term capital gains and a 40% exclusion on qualified dividends. The combined effect for high-income crypto holders is significant: a top marginal effective rate of roughly 1.5% on long-held crypto gains, plus reduced state tax on dividend-paying portfolios. For Bakken-region executives and HNW investors, this combination is one of the most generous state tax treatments in the country.

How does North Dakota tax cryptocurrency mining income?

North Dakota follows federal IRS treatment for cryptocurrency mining. Mining rewards are generally taxed as ordinary income at fair market value on the date received, then become subject to North Dakota's progressive rates (0% to 2.5%). North Dakota has a meaningful flared-gas mining presence — operations that use stranded natural gas at Bakken well sites to power mining rigs. These operations have specific tax positioning around energy-cost deductions, depreciation, and trade-or-business analysis that differs from hobby mining. Once mined coins are eventually sold after a holding period exceeding one year, North Dakota's 40% LT capital gains exclusion can apply to the appreciation. Chainwise CPA helps North Dakota miners structure their activity correctly from setup through eventual disposition.

How can Bakken oil-and-gas executives coordinate crypto holdings with mineral rights and royalty income?

Bakken-region executives often hold complex income profiles: working interest income, mineral rights royalties, oil-and-gas operating income, and digital asset positions. Coordinating crypto realizations with this overall income picture matters — both for federal alternative minimum tax exposure and for capturing North Dakota's 40% long-term capital gains exclusion within available bracket capacity. Working interest deductions, intangible drilling cost treatment, and depletion calculations interact with crypto gains in ways that generalist CPAs rarely model. Chainwise CPA brings crypto-specific expertise to high-income North Dakota executives whose financial picture spans digital assets and traditional energy holdings.

What is Form 1099-DA and how does it affect North Dakota crypto investors?

Form 1099-DA is the IRS reporting form that crypto exchanges and brokers issue for digital asset transactions, with broader rollout taking effect across recent tax years. North Dakota investors should expect their returns to require careful reconciliation between 1099-DA totals reported by exchanges and their personal cost basis records. Discrepancies are common — particularly for investors using multiple wallets, self-custody, or DeFi protocols — and require expert CPA review to avoid overstated gains, IRS notices, or correspondence from the North Dakota Office of State Tax Commissioner.

Can a CPA based in Virginia prepare my North Dakota tax return?

Yes. Certified Public Accountants licensed in any U.S. state can prepare federal returns and out-of-state state returns, including North Dakota's Form ND-1. Chainwise CPA serves North Dakota clients remotely with secure document handling, encrypted client portals, and video meetings. Our credentialed team brings deep crypto expertise plus working knowledge of North Dakota's 40% long-term capital gains exclusion, qualified dividends 40% exclusion, and Bakken oil-and-gas income coordination — depth that few in-state generalist CPAs currently match.

North Dakota Crypto CPA for Investors, Miners, Founders

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At Chainwise CPA, we’re more than number-crunchers — we’re your strategic partners in North Dakota’s growing crypto community, demystifying digital asset taxes from the Red River to the Badlands.

Our mission? To translate North Dakota’s low-rate, high-exclusion tax landscape and federal crypto law for Peace Garden investors — empowering confident financial decisions across the prairie.

Crypto Account Reconciliation

Tailored crypto tax services with personalized deductions, seamless digital filing, and year-round North Dakota support to minimize your tax burden and maximize Peace Garden State savings opportunities.

Tax Consulting & Advisory

Expert crypto tax planning for North Dakota executives, founders, and investors. We optimize deductions and entity structures to lower liability and drive better, longer-term financial outcomes statewide.

Tax Compliance & Resolution

Specialized crypto tax resolution services for North Dakota filers handling IRS and OST notices, audits, or disputes. We protect your financial security with precision expertise and proven calm strategy.

Crypto & Fiat Accounting

Specializing in crypto bookkeeping and accounting for North Dakota blockchain startups and miners. Software guidance, transaction reconciliation, and clean financial reporting across crypto and fiat alike.

About Us

Why Choose Chainwise CPA?

In the ever-evolving world of cryptocurrency, staying compliant with North Dakota’s capital gains rules can feel like reading a Red River flood map at dusk. Why go it alone when an expert can be at your side?

Crypto-Focused Expertise

Our team lives and breathes North Dakota crypto taxation. We track every IRS and OST shift so you never have to worry.

Tailored Solutions

From Fargo founders to Williston executives, we craft strategies that fit your unique North Dakota tax situation each year.

Proactive Approach

We don’t just react in April — our year-round planning helps North Dakotans optimize gains and minimize state liabilities.

What Our Clients Say

Testimonials

Don’t just take our word for it – hear from the crypto enthusiasts and businesses we’ve helped navigate the complex world of cryptocurrency taxation. Our clients’ success stories speak volumes about our expertise, dedication, and the real-world impact of our services.

Matt O.

14:54 22 Apr 26

They are great to work with...been with them since 2020...very professional friemdly and very easy to work with...

Robert L.

19:42 31 Mar 26

I was at the end of my rope trying to decipher the never ending new rules and regulations of the IRS, as it pertains to crypto. I thought I was doing a good job keeping everything in order with my exchanges, transfers and swaps, until I received my 1099 - DA's, which were highly inaccurate. I knew my problems would only get worse if I didn't take a more professional approach in addressing them, so I needed to hire a crypto and tax expert.

As I researched this topic, one crypto advisory group clearly stood out amongst their competition, and that was Polygon Advisory Group. Before I could sign up with them, I had to have brief meeting with them to see if my needs and their talents would align. After our 15 minute intro meeting, I was more than convinced they had the skillset, and desire, to unravel my crypto challenges.

I have to commend Daniel B. and his extraordinary talent to analyze my crypto reports and then provide reconciliation for all of my accounts. He was also intuitive to recognize many gaps in my information and then investigate deeper to connect all of the data points. There is no possible way I could have performed such a feat by myself. When all was finished, Daniel went back in my previous tax returns and even recommended that I file amendments for the last 5 years, and that ended up saving me a lot of money (excess $10K) due to me incorrectly reporting my crypto income.

Closing: So many companies are only willing to document the numbers that you provide them and then quickly close your file. Polygon Advisory Group digs in deep and investigates the incomplete files/data and helps you bring resolve to your crypto headaches. I'll use them again next year, as they have my complete trust!

Anthony S.

16:55 17 Oct 25

I was very happy with the service I received from Chainwise CPA and Polygon Advisory Group. Finding someone to prepare my crypto tax return was challenging. But Chainwise CPA group had the experience and knowledge base in crypto taxes to get the job done very efficiently. I am thankful for their service and helping me through this process.

Jon Luk P.

06:25 17 Jun 25

Excellent crypto tax service. Highly recommend!

Brent P.

20:09 14 Jun 25

I have been using Sharon and her team for several years and they have always been attentive, quick to respond, and courteous. They have navigated a lot of complex issues in the world of Crypto-assets. They navigate effortlessly through CoinTrackin.info

Paul M.

16:42 11 Jun 25

A very complete service if youre serious about doing crypto right. Very prompt service and great about establishing clear guidelines and deliverables.

Anupam B.

20:07 24 Mar 25

I recommend Chainwise CPA because they were professional, cost efficient, competent and courteous in the tax services they provided me. They did my Federal and state tax returns for cryptocurrency transactions in addition to the tax work on my incomes from pensions and annuities, interest and dividend earnings. They were thorough in their work, and patient with me. I would recommend them because they are world-class and reliable in what they do.

Alberto M.

15:35 17 Mar 25

Sharon Yip and the whole team were amazing, they were able to help me get all my crypto aligned and tracked all my transactions to identify my gains and losses for me to properly complete my 2024 taxes.
The whole time the team provided timely responses and were able to guide me during the whole process and explained what was being done.
Had a couple of zoom calls before even starting working with them to clarify if they were the correct people to help me with my crypto situation.
Very knowledgeable, helpful, courteous, highly recommended

Demetre

20:07 16 Mar 25

Chainwise is patient and professional year-in and year-out. I deeply appreciate working with them-

Laura R.

18:44 05 Mar 25

I experience Chainwise CPA as responsive to me as an individual client, meeting my needs and inquiries on a timely basis. I experience their staff as knowledgable, curious in a beneficial way, providing service from integrity and awareness. I use Chainwise CPA for both crypto reconciliation and tax preparation. I find their service solid, progressive. I experience their corporate core values align with my personal core values. This creates relationship, collaboration and results I can trust. I highly recommend their services.

Jameel N.

14:38 09 Jan 25

Chainwise CPA has helped me out quite a few times. Trying to navigate the world of taxes and crypto is not easy at all. The team has answered my all questions even going above and beyond at times to make sure I was set up for success. They are always friendly and can help you if you are a crypto investor that needs to stay up to date with the latest and greatest. Thank you for all that you have done and the help I know I can lean on you for in the future!

A. B.

17:51 08 May 24

I was new to crypto trading and lacked knowledge about how crypto transactions are taxed and how to report crypto profits and/or capital gains to the IRS. As a new customer, I contacted Polygon Advisory Group services to prepare my tax documents for both all my crypto transactions and for my regular income and other financial investment earnings. Their services were comprehensive and thorough and in compliance with every detailed aspect of my IRS and Virginia tax filing requirements.

Case Studies

Success Stories from Clients Who Plan Ahead

From startup founders to seasoned professionals, our clients turn complexity into clarity. Explore how proactive tax strategy helps high-achievers preserve wealth, stay compliant, and plan with confidence.

Individual Client

From Confusion to Confidence: A Physician’s Crypto Tax Journey

A physician saved hundreds of hours and gained total peace of mind as Chainwise simplified crypto tax reporting with precision, responsiveness, and clarity.

Individual Client

Peace of Mind, Not Panic: One Developer’s Crypto Tax Solution

A developer reconciled 10,000 crypto transactions and saved 200 hours while gaining confidence, clarity, and relief through expert, hands-on CPA support.

All case studies are based on real client submissions collected through our Case Study Questionnaire. Each story is shared with permission and reflects genuine results from actual Chainwise CPA engagements.

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