President Trump's 2025 financial disclosure revealed $1.4 billion in crypto gains. That figure now sits under scrutiny from tax professionals weighing how such a large, volatile asset class gets valued for federal reporting.
Shehan Chandrasekera, a CPA and head of tax strategy at CoinTracker, analyzed the disclosure for CBS News. His core concern centers on methodology. Crypto holdings lack the daily traded-price transparency of stocks. When an investor realizes a gain or reports unrealized gains on a disclosure form, the valuation method matters sharply. A conservative estimate versus a peak-market one can swing the number by millions.
The IRS has long grappled with crypto reporting. Taxpayers must report fair-market value at the time of transaction or, in some cases, at year-end for certain holdings. The agency's guidance on crypto valuation remains limited, and enforcement priorities have shifted across administrations. Without crystallized rules, valuations can reflect differing interpretations of what "fair market value" means in an illiquid or thinly traded asset.
Trump's disclosed crypto ventures include stakes in World Liberty Financial and other blockchain holdings. The jump from prior years' reported values to $1.4 billion invites questions about timing, asset selection, and the pricing model used. Whether the IRS examines the calculation depends partly on audit risk thresholds and the agency's current enforcement capacity, which has contracted in recent years.
Tax professionals typically flag high-value, complex asset disclosures for closer review. A figure this size involving crypto—a category where valuation disputes are common—fits that profile. Chandrasekera's intervention suggests the tax community expects questions to follow.
The disclosure reveals the asset class's role in high-net-worth portfolios but also exposes a structural gap. The IRS can demand documentation of valuation methods, yet no standardized framework governs how crypto gains land on tax forms. Until that clarity arrives, large reported crypto income will likely draw expert scrutiny and potential audit risk.