U.S. Crypto Tax Reporting, Cost Basis, and Tax-Lot Selection
Summary
This guide outlines U.S. federal tax reporting topics for digital asset activity during the 2025 tax year. It describes taxable disposals, including crypto-for-crypto trades, and treats staking rewards as income when the taxpayer gains the ability to control them. It also explains that reported gross proceeds do not by themselves establish a taxable gain or loss, and that transaction fees can affect cost basis.
The guide reviews FIFO and specific identification, with LIFO and HIFO presented as selection approaches, and notes that specific identification requires records of acquisition and disposition details. It says cost basis tracking for 2025 is handled by account or wallet, with tracing required for transfers, and points to transaction reporting forms. The material is an informational exchange-specific overview, not tax advice; it does not establish an individual’s tax outcome or provide a comprehensive treatment of all rules.
Key ideas
- Crypto-for-crypto trades are treated as taxable disposals under the guide’s description of U.S. rules.
- Staking rewards are treated as income when the taxpayer obtains control, measured at fair market value then.
- Gross proceeds reported by a broker are not equivalent to taxable gain or loss.
- Fees may be incorporated into cost basis calculations and change reported gains or losses.
- Specific identification depends on detailed acquisition and disposition records, while wallet transfers require basis tracing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.