Every trade is taxable
Buying with USD isn't taxable. Selling for USD, trading one crypto for another, spending crypto, earning crypto, or receiving airdrops, all are taxable events at fair market value on that date.
Staking and mining
Staking rewards are ordinary income at FMV on receipt. Mining is self-employment income if done as a trade or business, otherwise ordinary income.
No wash-sale rule (yet)
Stock wash-sale rules don't currently apply to crypto, which enables tax-loss harvesting strategies. Legislation may close this.
Common questions
- Do I have to report if I didn't sell?
- Only if you had a taxable event (trade, spend, earn). Pure hold = no report. Answer the crypto question on 1040 honestly anyway.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Tax Planning
Year-round tax planning for individuals and business owners. We project the year's income quarterly and model decisions before they become tax liabilities.
Capital Gains Tax Rates
Long-term gains are taxed at 0%, 15%, or 20% by income; short-term gains use your ordinary rate. 2025 brackets, the 28% collectibles cap, and the 3.8% NIIT.