Keep it simple, keep records

The crypto taxes guide.

General information for learning, in plain words: how the US generally treats selling, trading, earning and spending crypto, what records keep you calm, and when to call a professional.

Reviewed and current as of September 12, 2026

01General information, and your next step

This page shares general information for learning. Tax rules carry real detail and real deadlines, so for decisions about your own situation, talk with a qualified tax professional. Think of this guide as the map, and your advisor as the companion who walks the route with you.

This page reflects general US federal treatment as of the 2025 tax year. Rules change, so always check current guidance before you act.

02How the US generally treats crypto

Since IRS guidance issued in 2014, the United States generally treats virtual currency as property for federal tax purposes. That one idea shapes everything below: moving crypto around can create tax events, much like selling shares of stock.

States may add their own rules on top. The federal picture here gives you the vocabulary to ask your advisor sharp questions.

03Selling and trading

Converting crypto to dollars generally counts as a sale. Trading one coin for another generally counts too, even with zero dollars changing hands. Each event generally compares what you received against what you originally paid, and the difference lands as a gain or a loss.

Holding length matters in the general picture: assets held longer often receive friendlier treatment than quick flips. Your records make these calculations possible, which brings us to section six.

04Earning crypto

Receiving crypto as pay, mining rewards or staking rewards generally counts as income when you receive it, valued in dollars at that moment. Later, when you sell those coins, the general sale rules from section three apply on top, measured from the value when you received them.

Airdrops and similar distributions generally follow the same idea: value received counts when it lands in your hands. For a brand new situation, your tax professional gives the clear answer.

05Spending crypto

Paying for coffee with bitcoin feels like spending cash, and the general treatment sees it as selling the bitcoin first. The purchase price of the coffee becomes the sale value, compared against what you paid for those coins.

This surprises many newcomers, and knowing it early keeps everything smooth. Small everyday spends add up across a year, which is one more reason good records pay off.

06Records that keep you calm

For every move, note the date, the coins and amounts, and the dollar value at the time. Exchanges provide transaction histories: download them regularly. Wallet to wallet moves deserve notes too, since the trail belongs to you.

Good records turn tax season from a scramble into a routine. Many crypto tax tools import exchange data and do the math for you, and your advisor will thank you for tidy books.

07When to talk to a professional

Bring in a qualified tax professional when your activity grows beyond simple buys: frequent trading, DeFi yields, mining income, business payments in crypto, or any year with large gains. The fee buys clarity and confidence.

Keep learning here too: the glossary defines every term in plain language, Start Here maps your first week, and the Daily Brief covers regulatory news every morning.