Company Stock and Crypto: Two Concentrated Positions, Two Very Different Tax Problems

Company Stock and Crypto: Two Concentrated Positions, Two Very Different Tax Problems

One asset is most of what you own. Everybody has an opinion about that, and nearly every opinion is about risk.

Nobody covers the part that decides what you can actually do. Concentrated position tax treatment is not one subject. It splits hard depending on which asset made you concentrated. This post compares the two common cases, employer equity and a digital asset bought early, and does not tell you what to do with either.

Two firms handle opposite halves of the problem. Crypto Tax Made Easy works the digital asset side, where the hard part is proving what you paid. Doug Johnson CPA works with high earners holding equity compensation, where the hard part is that somebody else controls the calendar. Neither is a financial advisor, neither is ranked here, and both are paying Sam's List members.

Concentrated Position Tax Treatment Starts With One Shared Problem

A position gets large enough that selling it stops being a portfolio question first. At small size you pay whatever you pay and nobody models it. At large size the tax consequence can be the biggest line in the transaction, large enough that the order and timing of sales change the total.

The limit on that framing: tax cost is not by itself a reason to keep an asset. It is one input, and weighing it against concentration is the judgment this article does not make.

Basis: One Was Reported for You, One You Have to Prove

Here is the first fork, and the biggest.

Equity compensation leaves a paper trail somebody else created. Grants, vest or exercise events, payroll involvement, a broker holding the shares. Your basis is usually recorded by an entity whose job it was to record it. It is not always right, and the classic error is failing to count compensation income already run through payroll, but a record exists to correct.

Crypto frequently has no such entity. Coins bought on an exchange that later shut down, moved to a wallet, swapped, bridged, staked, moved again. The basis exists as a fact and the burden of showing it falls on you, so a holder who has not reconstructed history cannot compute a sale accurately in advance. Reconstruction takes weeks and costs real money, which is worth knowing before you start.

Timing Control: Who Decides When You Can Sell

The second fork is about permission.

An employee holding company stock often cannot transact when they want. Vesting decides when shares exist. Trading windows, insider policies and preclearance decide when they can move, and private company shares may carry transfer restrictions that make the question academic. A plan you cannot execute on the date it needs to happen is not a plan.

A crypto holder usually faces none of that. Any day, any amount, any order. That sounds like an advantage and produces a different failure: fast decisions in a volatile week, with no record of which units were sold.

The limitation: plenty of digital asset holders do face constraints, including locked or vesting project tokens, lending arrangements, and positions inside structures that are not freely transferable.

Lot Selection: The Lever That Exists on One Side

This is the most useful mechanical difference, and it only helps before the sale. When you hold units of the same asset bought at different times and prices, which units you sell changes the gain you report.

On the digital asset side, identifying specific units is generally available if your records support the identification and you make it at the time of the transaction rather than picking a convenient answer at filing.

On the equity side the same idea exists in principle and is constrained in practice. Compensation shares arrive on defined dates, sit at a plan administrator, and can be governed by plan defaults and employer policy, so the equity holder usually has fewer usable choices and sometimes none.

The cost of the lever is administrative discipline, and getting it wrong turns a planning tool into an exposure. Rules on how units are tracked have been changing, so confirm the current year's requirements with your preparer.

Information Reporting, and What Has Been Changing for Digital Assets

Equity compensation has sat inside the information reporting system for a long time. The employer reports compensation, the broker reports proceeds, and the figures arrive whether or not you do.

Digital assets are being brought into a comparable regime. The part that matters is not the form name. It is that reported figures will increasingly exist for transactions you have been computing on your own, and a mismatch between what a platform reports and what you file is what generates a letter. Scope and effective dates have been revised more than once, so do not take a date or a form's coverage from an article, including this one.

More reporting is also not accurate reporting. A platform that never saw where your units came from can be wrong in either direction, and reconciling it is your work.

The Comparison, Side by Side

	Employer equity	Digital asset
Basis	Reported by a third party; error mode is compensation already taxed but not reflected	Often unreported; error mode is no provable basis at all
Timing control	Constrained by vesting, windows and company policy	Usually unconstrained, which produces undocumented fast decisions
Lot selection	Exists in principle, limited by plan defaults	Generally available and the main lever, if records support it
Reporting	Long established through employer and broker reporting	Expanding, with scope and dates that have been revised
Usual first move	Map the calendar: what vests when, and when you may act	Rebuild the history: wallets, exchanges, transfers, unit costs

Nothing in this table is a recommendation, and the right answer depends on facts this article does not have.

What Concentrated Position Tax Treatment Shares Across Both Assets

Three things do not care which asset you hold.

The rate question has the same shape. How a gain is taxed depends on its character and your holding period, and rates move with law and with your income, so nobody hands you a number here.

The state question is underrated. Where you live when a sale happens, where you lived when equity was earned, and how your state treats those amounts can matter more than the federal difference.

And doing nothing is a decision, with its own consequences, including a concentration you have chosen to keep. That is not an argument for selling. It is an argument for choosing deliberately rather than by default.

Where Each Firm Fits

On the digital asset side the work is reconstruction before anything else. Crypto Tax Made Easy is in Little Silver, New Jersey, founded 2021, 6 employees, nationwide, and does crypto tax specifically rather than as a line item on a general practice.

On the equity side the work starts with the calendar and the compensation already reported. Doug Johnson CPA is in Los Angeles, founded 2024, 3 employees, Doug Johnson as CPA owner and Frederico Lima as associate, nationwide, working with growing businesses and high earners holding equity compensation.

Crypto Tax Made Easy has 6 verified client reviews on Sam's List as of 2026-09-28, and Doug Johnson CPA has 15 as of 2026-09-28. Each review is submitted by an individual who identifies as a client of that firm and rates it on communication, subject-matter knowledge, and overall satisfaction. Reviews reflect those individual experiences and do not represent an endorsement by Sam's List. Both firms are paying Sam's List members, and payment does not buy, influence, or remove reviews. Ratings and rankings are not indicative of future performance or results. The two counts are not a comparison between the firms.

The limitations, plainly. Crypto Tax Made Easy is a six-person firm with a narrow specialty, so a complicated non-crypto return may need a second professional, and no preparer can conjure records that no longer exist. Doug Johnson CPA has three people and a 2024 founding, a shorter track record than some readers want, and lists minimums of $250,000 of income or $250,000 of revenue. Neither firm can tell you whether to sell.

Frequently Asked Questions

Which position should I unwind first if I hold both?

That is an investment question and this article does not answer it. What a tax professional can tell you is what each sale would cost and what each requires, which is different information. Do the equity calendar and the basis reconstruction first, because until both exist any comparison runs on an unverified number.

Do the wash sale rules apply to crypto?

That is the right question and the wrong one to settle from an article. The answer turns on current law and on the specific asset, and it has been the subject of legislative proposals, so something accurate two years ago may not be now. Ask your preparer what applies in the year you are filing.

My exchange shut down and I have no records. Is the position stuck?

No, it is a reconstruction problem rather than a permanent one. On-chain history, surviving statements, bank records of the original purchase and old email confirmations frequently rebuild enough to support a defensible basis. The result is well supported rather than perfect, which beats reporting zero basis.

If nobody can tell you what a sale would actually cost, that is a records and computation problem, and it is fixable. You can browse accountants on Sam's List who work on equity compensation and digital assets.

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About the author: Kimberly Green is the cofounder of Sam's List, where business owners and high earners find vetted CPAs, financial advisors, and fractional CFOs. She's met one-on-one with 400+ financial professionals and writes from the real data behind thousands of client-advisor matches. Ask her anything about finding an accountant - she's heard it all, including the questions people are afraid to ask.