Crypto Tax Guide
An overview of cryptocurrency taxation, based on United States rules. Rules and rates differ by country, and this guide is not tax advice.
Taxable Events
- Selling crypto for fiat currency
- Trading one cryptocurrency for another
- Using crypto to purchase goods or services
- Receiving mining rewards
- Earning staking rewards
- Receiving airdrops
Capital Gains Tax
In the United States, cryptocurrency is treated as property for tax purposes, and capital gains tax applies to profits when you sell.
Short-term vs Long-term (US federal)
- Short-term: Held less than 1 year - taxed as ordinary income (10-37%)
- Long-term: Held more than 1 year - preferential rates (0%, 15%, or 20%)
Calculating Your Taxes
Use our free Profit/Loss Calculator to work out the gain or loss on a sale. Tokencal does not calculate tax owed.
The basic formula: Capital Gain = Sale Price - Cost Basis
Record Keeping
Maintain detailed records of:
- All purchase dates and prices
- All sale dates and prices
- Trading fees
- Staking and mining rewards
- Wallet addresses and exchange names
Tax Strategies
- Tax Loss Harvesting: Sell losing positions to offset gains
- Long-term Holding: Hold assets for 1+ year for lower tax rates
- Cost Basis Methods: Choose FIFO, LIFO, or Specific Identification