2025 US Crypto Tax Guide – Simplified
Crypto is property in the US. This means any gains or income from crypto may be taxable.
Key Points
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Short-term gains (<1 year) → taxed at 10%-37%.
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Long-term gains (>1 year) → taxed at 0%, 15%, 20%.
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Tax deadlines: April 15 (most individuals), June 15 (US abroad), Oct 15 (extension).
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Brokers report sales from Jan 1, 2025 via Form 1099-DA.
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FIFO accounting mandatory 2026 onward.
Taxable Events
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Selling crypto for cash
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Trading crypto for crypto
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Using crypto to buy goods/services
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NFTs, staking, mining, airdrops, DeFi rewards
Income Tax: Crypto received as salary or payment is taxed at its fair market value.
Non-Taxable Events
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Buying crypto with cash
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HODLing (holding crypto)
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Donating crypto to registered charities
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Receiving crypto as a gift
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Transferring between your own wallets
Tax Optimization Tips
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Hold crypto >1 year for lower long-term rates
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Use tax-loss harvesting to offset gains
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Deduct mining/trading expenses
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Invest via IRAs for tax benefits
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Track all transactions with a crypto portfolio tool
Filing Forms
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Form 1040 → report overall income
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Form 8949 + Schedule D → report gains/losses
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Forms 1099-K/B/DA → broker/exchange reports
Keep records of dates, amounts, cost basis, and FMV for all crypto transactions.
Bottom Line: Track all crypto activity, report accurately, and use strategies to reduce taxes. Tools like Blockpit make crypto tax reporting simple and reliable.
Crypto Tax Guide – Taxable vs Non-Taxable Events (Visual)
Title: 2025 US Crypto Tax – Quick Guide
Left Side – Taxable Events (Red/Orange Box)
Label: 💰 Taxable Events
| Event | Tax Type |
|---|---|
| Sell crypto for cash | Capital Gains |
| Trade crypto for crypto | Capital Gains |
| Buy goods/services with crypto | Capital Gains |
| NFTs (sell/trade) | Capital Gains |
| Crypto salary/payment | Income Tax |
| Staking rewards | Income Tax |
| Mining rewards | Income Tax |
| Airdrops / Hard forks / DeFi rewards | Income Tax |
Right Side – Non-Taxable Events (Green Box)
Label: ✅ Non-Taxable Events
| Event | Notes |
|---|---|
| Buy crypto with cash | No tax on purchase |
| Hold crypto (HODL) | Only taxed when sold/exchanged |
| Donate crypto to charity | Deductible, based on fair market value |
| Receive crypto as gift | Inherits giver’s cost basis |
| Transfer between own wallets | Not taxable |
| Use crypto as loan collateral | Not taxable unless seized |
Bottom Section – Quick Tips
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Hold >1 year → lower long-term rates
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Track all transactions → use tools like Blockpit
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Tax-loss harvesting → offset gains
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Report via Forms: 1040, 8949, Schedule D, 1099-K/B/DA
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Deadlines: April 15, June 15 (abroad), Oct 15 (extension)