📋 Table of Contents
Crypto Tax Guide for 2025
Cryptocurrency transactions are generally taxable events in the US — selling, trading, or spending crypto can all trigger capital gains tax, making accurate record-keeping essential.
What Counts as a Taxable Event
| Action | Taxable? |
|---|---|
| Selling crypto for cash | Yes — capital gains/loss |
| Trading one crypto for another | Yes — treated as a sale |
| Buying goods/services with crypto | Yes — treated as a sale |
| Simply holding crypto | No |
| Transferring between your own wallets | No |
Short-Term vs. Long-Term Gains
Crypto held under a year before selling is taxed at short-term capital gains rates (matching your ordinary income tax rate) — holding over a year qualifies for typically lower long-term capital gains rates.
Tracking Your Transactions
Crypto tax software (like CoinTracker or Koinly) can import exchange history and calculate gains/losses automatically — manual tracking becomes impractical quickly if you trade frequently.
Common Mistakes
Assuming crypto-to-crypto trades aren't taxable — the IRS treats these as a sale of the first asset, triggering a taxable event even without ever converting to cash.
Frequently Asked Questions
No — simply holding crypto isn't a taxable event. Taxes are triggered when you sell, trade, or spend it, realizing a gain or loss.
Yes — the IRS treats crypto-to-crypto trades as a sale of the first asset, meaning you owe tax on any gain even if you never converted to cash.