Cryptocurrency Tax Calculation Guide

Cryptocurrency transactions may be taxable events. Here's what you need to know.

Taxable Events

1. Selling crypto for fiat 2. Trading crypto for crypto 3. Using crypto for purchases 4. Receiving mining/staking rewards

Capital Gains Calculation

Gain/Loss = Sale Price - Cost Basis

Cost Basis Methods:

• FIFO (First In, First Out)
• LIFO (Last In, First Out)
• Specific Identification

Short-term vs Long-term

• Short-term: Held < 1 year (ordinary income rates)
• Long-term: Held > 1 year (lower capital gains rates)

Record Keeping

Track for each transaction:

• Date acquired
• Cost basis
• Date sold
• Sale price
• Fees

Use our Crypto Tax Calculator to estimate your liability.