Tax jurisdictions
Understand the current geographic scope and default US tax treatments for Embedded Taxes.
Availability
Awaken's consumer tax product supports reporting across many jurisdictions. See the Awaken country guide for the current list and country-specific availability.
The hosted and custom embedded products currently generate US tax results and reports. Contact us before designing an embedded experience for users in another jurisdiction.
How US tax treatment works
Awaken carries basis through owned-wallet transfers and treats bridging as non-taxable by default. Read the Awaken and Fenwick legal opinion behind this approach.
| Activity | Default US treatment |
|---|---|
Sell, swap, or spend crypto | Calculate a capital gain or loss from proceeds and cost basis |
Receive rewards or other earned crypto | Recognize income based on the transaction and available market value |
Transfer between owned wallets | Non-taxable; carry cost basis to the receiving wallet |
Bridge an asset between networks | Non-taxable by default; carry cost basis into the bridged asset |
Cost basis and custom treatments
For US embedded users, Awaken supports FIFO, LIFO, and HIFO cost-basis methods.
If your product needs a custom tax treatment, such as tokenized equities like xStocks, tokenized treasuries or other real-world assets, prediction markets, or protocol-specific receipt tokens, contact embed@awaken.tax. Tell us about the asset and desired reporting behavior, and we will evaluate what we can support.