Crypto Tax Reporting Guide (2026) - Form 8949 & Capital Gains
Crypto tax reporting guide: Form 8949, capital gains calculation, cost basis tracking, and cryptocurrency taxation requirements.
Summary
Crypto is property: report on Form 8949 with Schedule D. Cost basis tracking required for each transaction. Short-term gains (held <1 year) taxed at ordinary rates. Long-term gains (held >1 year) taxed at 0%, 15%, 20% depending on income.
Key Steps
- 1Form 8949: report each crypto sale with acquisition date, sale date, cost, proceeds.
- 2Cost basis: track purchase price for each unit, FIFO or specific identification method.
- 3Short-term gains: held less than 1 year, taxed at ordinary income rates (10-37%).
- 4Long-term gains: held more than 1 year, taxed at preferential rates (0%, 15%, 20%).
- 5Wash sale rule: applies to crypto (2026 guidance), no loss deduction if repurchased.
- 6Exchanges: each swap (BTC to ETH) is taxable event, track fair market value.