Capital gains & taxes — The Crypto Blueprint 2030

Let's dive into the world of crypto taxes. This chapter covers the United States. If you live elsewhere, check your local rules.

Do I need to pay taxes on crypto?

Yes. The IRS treats crypto as property, similar to stocks. Every Form 1040 now asks whether you received, sold or exchanged digital assets during the year. It's not as scary as it sounds once you know what counts.

Not taxable

Buying and holding. Buying crypto with dollars and holding it isn't taxable. You generally owe tax when you sell or spend it at a gain.
Moving crypto between your own wallets. Transfers to yourself are tax-free. Keep records of your original cost and purchase date.
Receiving a gift. No tax when you receive it. You take on the giver's cost basis, and tax applies when you sell.
Giving a gift. Gifts up to the IRS annual exclusion ($19,000 per person for 2025) don't require a gift tax return. Check IRS.gov for the current year's limit.
Donating to charity. Donating crypto to a qualified charity isn't a sale, and you may be able to deduct its value.

Taxable as capital gains

Selling for cash. If you sell for more than you paid, you owe tax on the gain. Sell at a loss, and you may be able to deduct it.
Swapping one crypto for another. Trading BTC for ETH counts as selling BTC.
Spending crypto. Buying a pizza with bitcoin counts as selling that bitcoin.

Hold for more than a year and gains are taxed at long-term capital gains rates, which are usually lower than short-term rates.

Taxable as income

Staking rewards, mining rewards, airdrops and getting paid in crypto are generally taxed as ordinary income, based on their value when you receive them.

New reporting rules

Starting with 2025 transactions, US brokers, including exchanges, send customers and the IRS Form 1099-DA, which reports your crypto sales. Make sure your own records match.

Tools that help

If this feels like a maze, crypto tax software can pull in your transactions and generate the forms for you:

For anything complex, work with a tax professional who knows crypto. Paying taxes is part of being a responsible investor. Keep good records and you'll handle crypto taxes like a pro.