Resources

In the U.S., trading one crypto asset for another can realize a capital gain or loss, even if you never cash out to your bank. The calculation compares your cost basis with the asset's value at the time of the swap.

The guide treats mined crypto as ordinary income at its market value when received. Reporting and eligible expenses differ between hobby mining and a mining business. A later sale can create a capital gain or loss based on the change in value since receipt.

A deduction depends on the circumstances. The guide identifies a transaction entered into for profit, criminal conduct under applicable law, and no reasonable prospect of recovery as key conditions. A qualifying loss is generally limited to cost basis, not the crypto's appreciated value. Ask a qualified tax professional to assess your situation.

For its 2025 tax-year context, the guide describes crypto tax-loss harvesting and says the stock wash-sale rule did not apply to crypto. It also notes that legislation could change this treatment. Check the rules for your asset and current tax year with a qualified professional before acting.

The guide explains that a gift generally carries over the giver's cost basis, while inherited crypto generally receives a basis tied to its value at the date of death. A gift may also require a gift-tax return depending on its value. Reporting thresholds and exceptions depend on the tax year and circumstances.