Core Insights - Understanding cryptocurrency taxation is crucial for anyone involved in buying, selling, or trading digital assets [1] Taxation on Cryptocurrency Transactions - Taxes are owed when cryptocurrency is sold for more than its purchase price or when one digital asset is exchanged for another, such as converting bitcoin to ethereum [2] - Tax reporting occurs in the year the transaction takes place, with the tax owed based on the holding period of the asset [3][4] Capital Gains Tax Rates - Short-term capital gains tax applies to assets held for one year or less, taxed at ordinary income rates ranging from 10% to 37% [5] - Long-term capital gains tax applies to assets held for more than one year, with rates of 0%, 15%, or 20% depending on taxable income and filing status [6] Tax Deductions for Losses - Capital losses can offset capital gains up to $3,000 per year, with excess losses carried forward to future tax years [8][10] - Unrealized losses do not count for tax deductions, and losses must be realized through the sale of the asset [11] Non-Taxable Situations - Certain actions do not trigger tax liabilities, such as holding crypto without selling, transferring between personal wallets, purchasing crypto with U.S. dollars, receiving crypto as a gift, or donating to charity [12][17] Reporting Requirements - Starting January 1, 2026, brokers will issue a new form, the 1099-DA, to report digital asset transactions, but taxpayers must still track their cost basis [13][14] - Taxpayers are responsible for accurately reporting their transactions, as discrepancies can lead to issues with the IRS [15][16] Tax Calculation Process - Taxpayers should collect transaction histories, determine cost basis, identify proceeds from sales, and classify transactions as short-term or long-term [23] - Crypto tax calculators can assist in managing high trading volumes and generating necessary reports for tax filing [19][20] Tax Implications of Crypto Usage - Exchanging one cryptocurrency for another or using crypto to purchase goods or services is considered a taxable event [21][22] - Staking rewards are taxed as ordinary income upon receipt, similar to interest earned [23][24]

🇨🇭 LATEST: Switzerland delays crypto tax information sharing until 2027 despite enshrining the Crypto-Asset Reporting Framework into law on Jan. 1. https://t.co/ig2YHPM3RT ...

Dig into the latest crypto tax proposal out of the White House and what their motives are + catch up on all the day's newshttps://t.co/w8hHw1dZrb ...

RT Alex Krüger (@krugermacro)What's the best crypto tax software for processing a large number of defi transactions?Best in terms of accuracy and ease of use. ...

Crypto Tax Impact - Brazil's new crypto tax ranges from 15% to 22.5% [1] - The tax disproportionately affects small investors [1] - Foreign exchange profits are also subject to the tax [1]

"Bitcoin Senator" @CynthiaMLummis introduced a bill Thursday that would codify many crypto tax perks industry leaders were hoping to include in President Trump’s reconciliation bill.Read more: https://t.co/FXR1TiMggx ...

Sen. Lummis pushes for crypto tax fixes in 'big, beautiful bill,' gaining support from crypto advocates https://t.co/mBpgojNxuk ...