Crypto Tax Form 8949 Reporting Guide for IRS Compliance (2026)
Report crypto transactions on Form 8949: transaction classification, cost basis calculation, short-term vs long-term gains, and Schedule D reconciliation.
Summary
Form 8949 is required for all crypto disposals. This guide explains transaction reporting, cost basis methods, and Schedule D reconciliation for IRS compliance.
Key Steps
- 1Classify transactions: sales, exchanges, disposals require Form 8949 reporting.
- 2Calculate cost basis: FIFO default, LIFO or specific ID if documented.
- 3Separate short-term vs long-term: held <1 year vs >1 year different rates.
- 4Complete Form 8949: date acquired, date sold, proceeds, cost basis, gain/loss.
- 5Reconcile with Schedule D: summarize Form 8949 totals on Schedule D.