Form 1099-DA is here. Exchanges now report. Here is what every US crypto holder should know in 60 seconds.
For US tax purposes, the IRS treats crypto like a stock or piece of real estate — not like cash.
1) Selling crypto for USD
2) Swapping one crypto for another
3) Spending crypto on goods
4) Receiving staking/mining rewards
5) Earning crypto as income
Buying crypto with USD. Holding it. Sending it between your own wallets. Donating to a qualified charity.
12mo
Hold > 12 months → long-term gain (lower rate: 0%, 15%, or 20%). Sell < 12 months → short-term (your ordinary income rate).
Starting with 2025 transactions, US crypto exchanges must report your gross proceeds to the IRS — just like brokers do for stocks.
Staking, mining, airdrops, and learn-to-earn rewards are taxed as ordinary income on the day you receive them, at their fair market value.
Sold crypto at a loss? You can offset capital gains and deduct up to $3,000 against ordinary income each year. Carry the rest forward.
CoinTracker, Koinly, TokenTax, and similar services connect to exchanges and wallets to auto-generate Form 8949 and Schedule D.
Every taxable event, how Form 1099-DA changes things, tax-loss harvesting, and how to stay compliant.
Educational content only. Not tax or legal advice — consult a CPA.