finance5 sections · 28 items
Crypto Tax Cheat Sheet
Taxable vs non-taxable crypto events, IRS reporting rules, Form 8949 guidance, and cost basis methods for cryptocurrency investors.
Taxable Crypto Events
| Item | Value |
|---|---|
| Selling crypto for USD | Capital gain/loss |
| Trading crypto-to-crypto | Capital gain/loss |
| Spending crypto on goods | Capital gain/loss |
| Mining rewards | Ordinary income |
| Staking rewards | Ordinary income |
| Airdrops received | Ordinary income |
| Payment for services | Ordinary income |
Non-Taxable Crypto Events
| Item | Value |
|---|---|
| Buying crypto with USD | Not taxable |
| Transferring between wallets | Not taxable |
| Gifting crypto (under $19K) | Not taxable to giver |
| Donating to charity | Tax deduction |
| Holding / HODLing | Not taxable |
Cost Basis Methods
| Item | Value |
|---|---|
| FIFO (First In, First Out) | Default IRS method |
| LIFO (Last In, First Out) | Allowed if documented |
| Specific Identification | Most tax-efficient |
| HIFO (Highest In, First Out) | Minimizes gains |
| Average Cost | Not allowed for crypto |
IRS Reporting Requirements
| Item | Value |
|---|---|
| Form 8949 | All crypto disposals |
| Schedule D | Summary of gains/losses |
| Schedule 1 (Line 8z) | Mining/staking income |
| Schedule C | Crypto business income |
| Form 1040 Question | Digital asset checkbox |
| Reporting Threshold | $0 — all amounts |
Capital Gains Holding Periods
| Item | Value |
|---|---|
| Short-term (< 1 year) | Ordinary income rates |
| Long-term (≥ 1 year) | 0%, 15%, or 20% |
| Net Investment Income Tax | +3.8% surtax |
| Loss Deduction Limit | $3,000/year |
| Wash Sale Rule | Currently not applied |
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