Question 1

How is crypto taxed in the US?

Accepted Answer

The IRS treats crypto as property. Every sell, swap, or spend triggers a capital gain or loss based on the difference between the sale price and your cost basis. Short-term gains (held one year or less) are taxed at ordinary income rates. Long-term gains (held more than one year) are taxed at 0%, 15%, or 20% based on your taxable income.

Question 2

Does the wash-sale rule apply to crypto?

Accepted Answer

As of the 2025 tax year, no. The IRS classifies crypto as property, not a security, so the 30-day wash-sale rule does not currently apply. You can sell at a loss and re-buy the same coin immediately. Legislation to close this loophole has been proposed.

Question 3

What is FIFO and why does this calculator use it?

Accepted Answer

FIFO (first-in, first-out) matches each sell against your earliest remaining buy lot. It is the IRS default if you haven't specifically used another method (like Specific Identification) at the time of the trade. The calculator runs FIFO automatically across your pasted transactions.

Question 4

Is this tax advice?

Accepted Answer

No. This is an estimate based on your inputs and current US federal brackets. State tax is not included. Confirm every number with a licensed CPA or tax professional before filing.

Free US Crypto Tax Calculator

Form 8949 summary

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