Question 1

How are crypto gains taxed in the U.S.?

Accepted Answer

Crypto is typically taxed as property. Profits from selling or swapping are capital gains (short‑term if held ≤1 year, long‑term if >1 year). Ordinary income applies to mining, staking, airdrops, and interest rewards.

Question 2

How are crypto gains taxed in the U.S.?

Accepted Answer

Crypto is typically taxed as property. Profits from selling or swapping are capital gains (short‑term if held ≤1 year, long‑term if >1 year). Ordinary income applies to mining, staking, airdrops, and interest rewards.

Question 3

What cost basis methods can I use (FIFO/LIFO/Specific ID)?

Accepted Answer

FIFO (first‑in, first‑out) and LIFO (last‑in, first‑out) are common. Specific Identification may lower taxes if you track lot IDs accurately. Consistency and proper documentation are key.

Question 4

What cost basis methods can I use (FIFO/LIFO/Specific ID)?

Accepted Answer

FIFO (first‑in, first‑out) and LIFO (last‑in, first‑out) are common. Specific Identification may lower taxes if you track lot IDs accurately. Consistency and proper documentation are key.

Question 5

Are crypto‑to‑crypto swaps taxable?

Accepted Answer

Yes. Swapping one coin for another is a taxable disposition in many jurisdictions, triggering capital gains/losses at fair market value at the time of the trade.

Question 6

Are crypto‑to‑crypto swaps taxable?

Accepted Answer

Yes. Swapping one coin for another is a taxable disposition in many jurisdictions, triggering capital gains/losses at fair market value at the time of the trade.

Question 7

Can I harvest crypto losses?

Accepted Answer

Yes. Realized losses can offset gains and potentially up to ,000 of ordinary income annually in the U.S., with excess carried forward. Beware of wash‑sale rules as guidance evolves.

Question 8

Can I harvest crypto losses?

Accepted Answer

Yes. Realized losses can offset gains and potentially up to $3,000 of ordinary income annually in the U.S., with excess carried forward. Beware of wash‑sale rules as guidance evolves.

Question 9

How should I track transactions for taxes?

Accepted Answer

Maintain detailed records: dates, amounts, cost basis, fair value, fees, and wallet/exchange. Consider using crypto tax software and consolidate data across wallets and chains.

Question 10

How should I track transactions for taxes?

Accepted Answer

Maintain detailed records: dates, amounts, cost basis, fair value, fees, and wallet/exchange. Consider using crypto tax software and consolidate data across wallets and chains.

Crypto Tax Calculator

Understanding Cryptocurrency Tax Obligations

Key Financial Terms

Capital Gains Tax

Cost Basis (Crypto)

FIFO (First In, First Out)

Form 8949

Frequently Asked Questions

IRS: Virtual Currency Guidance

IRS Notice 2014-21: Cryptocurrency Tax Guidance

Tax Professional Disclaimer