Important: This information is for educational purposes only. Consult a qualified tax professional for advice.
Yes. The IRS treats cryptocurrency as property. Every transaction resulting in a gain or loss is a taxable event.
| Transaction | Taxable? | Report On |
|---|---|---|
| Selling crypto for USD | Yes | Form 8949 / Schedule D |
| Crypto-to-crypto swap | Yes | Form 8949 / Schedule D |
| Mining rewards | Yes | Schedule 1, Line 8z |
| Staking rewards | Yes | Schedule 1, Line 8z |
| Airdrops | Yes | Schedule 1, Line 8z |
| Buying with fiat | No | Cost basis set |
| Wallet transfers | No | Not taxable |
Gain/Loss = Sale Price - Cost Basis
First In, First Out
Sell oldest coins first. Default method.
Last In, First Out
Sell newest coins first.
Highest In, First Out
Sell most expensive first. Minimizes gains.
Held less than 1 year
Up to 37%
Ordinary income rate
Held more than 1 year
0% / 15% / 20%
Preferential rates
Digital Asset Proceeds (2024+)
Sales of Capital Assets
Capital Gains Summary
Staking, Mining, Airdrops
FL, TX, WA, WY, NV, AK, TN, NH*
CA, NY, PA
Educational purposes only. Not tax advice. Consult a professional.
