Crypto Tax Calculator

The IRS treats crypto as property, not currency. Every taxable disposition - selling for cash, swapping one coin for another, or spending it on goods - triggers a capital gain or loss based on cost basis vs proceeds. Holding more than 1 year qualifies for long-term capital gains rates (0%, 15%, or 20%); under 1 year is taxed at ordinary income rates.

No. Buying crypto with USD and holding is not a taxable event - no realization. However, you must answer "Yes" to the IRS digital asset question on Form 1040 only if you received, sold, exchanged, or otherwise disposed of digital assets. Just-buying-and-holding counts as "No" on that line.

Yes. Staking rewards, mining income, and airdrops are taxable as ordinary income at fair market value on receipt - even if you don't sell. The receipt establishes your cost basis for future capital gains/losses when sold. Self-employment tax may also apply to active mining as a business.

As of 2026, the wash sale rule (which disallows losses on substantially identical securities sold and repurchased within 30 days) does NOT apply to crypto - this creates a tax-loss harvesting opportunity. Multiple congressional proposals would close this loophole, so the law could change. Track all transactions carefully because the new Form 1099-DA requires brokers to report basis starting in 2026.