Joined February 2018
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15 Jan 2025
Crypto Tax Breaks USA:
- Hold your crypto for over 1 year to pay 0-20% on long-term gains.
- Gift up to $18,000 of crypto per recipient per year without reporting tax.
- You pay 0 long term capital gains if under $47,025 in taxable income.
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Crypto tax tip: Your portfolio value and your tax bill are two different numbers.
Most traders track what their crypto is worth right now. The IRS cares about your cost basis: what you paid per coin and when you bought it.
Your capital gain = sale price minus cost basis.
For every purchase, record:
- Date of purchase
- Price per coin at the time of purchase
- Quantity bought
No cost basis records, no accurate tax reporting.
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Jun 13
Tax Tip: Portfolio value alone isn't enough at tax time.
To calculate taxable gains, you need both sides of every trade:
Cost basis: date bought, price paid, quantity
Sale data: date sold, sale price
Without both, there's no gain to calculate.
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Jun 11
Tax Tip: Crypto losses can offset unlimited capital gains within the same tax year.
Lost $30,000 on a bad ETH trade but gained $30,000 selling BTC?
They cancel out completely. Net taxable capital gains: $0.
You can also apply up to $3,000 of excess losses against ordinary income each year. Anything left carries forward to future tax years.
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Jun 11
Crypto tax tip: No KYC doesn't mean no taxes.
If you swap ETH for UNI on Uniswap and deposit it to Coinbase, Coinbase has no record of what you paid on the DEX.
When you sell, the IRS sees full proceeds and zero cost basis. You could owe tax on money you already spent.
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Jun 10
Tax Tip: Crypto losses offset stock and real estate gains too.
If you sold index funds at a profit this year, selling underwater crypto before Dec 31 can zero out those gains.
When total losses exceed gains, you can also deduct up to $3,000 against ordinary income. The rest carries forward to next year.
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Jun 10
Tax Tip: Crypto arbitrage isn't the free money it looks like.
Every time you buy on one exchange and sell on another, that sale is a taxable event. Hold for minutes and the profit is a short-term gain, taxed as ordinary income, up to 37%.
Run it hundreds of times a month and trading fees plus taxes quietly eat the spread.
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Jun 9
Tax Tip: The wash sale rule doesn't apply to crypto.
You can sell Bitcoin at a loss, lock in that capital loss to offset your gains, then buy it right back the same day.
Try that with stocks and the IRS disallows the loss for 30 days. Crypto has no such rule today.
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Apr 15
Non-taxable transactions:
- Moving crypto between your own wallets
- Buying crypto with USD
- HODLing
- Gifting crypto under $19K
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Apr 13
Worried about getting your crypto taxes done before the deadline? Tax extensions are free and easy to file.
You still owe an estimated tax payment by April 15, but you have until October 15 to make sure you have an accurate record of your gains/losses.
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Apr 10
5 days until the tax deadline.
Crypto tax tip: if your 1099-DA proceeds don't line up with what you report on Form 8949, it could lead to issues with the IRS. Check the numbers before you file.
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Apr 9
Tax Tip: If your 1099-DA proceeds are flat-out wrong, request a corrected form from your exchange.
Cost basis showing zero or unknown? Don't worry. Exchanges aren't required to track and report basis for the 2025 tax year.
Just report your true cost basis on Form 8949.
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Apr 8
Got a 1099-DA showing $47,000 in proceeds and no cost basis?
Don't worry, you don't owe taxes on $47,000 of capital gain.
Exchanges are not required to report cost basis for the 2025 tax year. As long as you have records, you can report your own basis on Form 8949.
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Apr 7
Crypto tax tip: Moving crypto from Coinbase to another exchange doesn't reset your holding period.
The issue: your new exchange has no record of your original buy date, so it won't be reported on Form 1099-DA.
That's why it's important to keep records of your crypto purchases.
Remember, your holding period determines whether you pay short-term or long-term capital gains tax rates (and the difference can be significant!)
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Apr 6
Staking rewards are taxed when you receive them, not when you withdraw them.
You have dominion and control the moment you can withdraw the crypto from your wallet.
It's ordinary income based on fair market value at receipt.
Some stakers miss this and only report when they cash out.
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Apr 3
If you transferred crypto into your exchange, your cost basis on Form 1099-DA is most likely wrong.
You'll have to find records of your original cost basis and report it on Form 8949. Remember, exchanges aren't reporting basis to the IRS in the 2025 tax year, so no adjustment code is needed.
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Apr 2
You do not need to request a corrected Form 1099-DA for the following errors:
- Blank cost basis
- Cost basis listed as "Unknown"
- Missing acquisition dates
Exchanges aren't required to track this for the 2025 tax year. Just report the correct info on Form 8949.
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Apr 1
Your Form 1099-DA might show $0 cost basis for crypto you bought on another platform.
If you're in this situation, there's no need to panic or request a corrected form. For the 2025 tax year, exchanges don't report basis to the IRS.
The IRS allows you to report your actual cost basis on Form 8949, as long as you have records to back it up.
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Mar 31
Crypto tax tip: Form 1099-DA is informational and should not be attached to your tax return.
You report your actual gains and losses on Form 8949.
If your 1099-DA has incorrect cost basis (common if you transferred crypto between platforms), you can report the correct numbers on Form 8949.
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Mar 31
The following transactions do appear on Form 1099-DA:
- Selling crypto for USD
- Trading one crypto for another (e.g. BTC for ETH)
- Spending crypto on goods or services
- Paying network fees when transferring between wallets
That last one surprises people. Network fees are considered disposals subject to capital gains tax, even though the amounts are usually just a few dollars.
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