Cryptocurrency Taxes: Capital Gains, Cost Basis Methods (FIFO vs HIFO), and IRS Form 8949
Understand crypto taxable events: crypto-to-crypto trades, gas fee deductions, staking income, and tax-loss harvesting.
Comprehensive guide to tax obligations: short-term vs long-term capital gains, cost-basis calculation strategies, and tax harvesting rules.
1. What Triggers a Crypto Taxable Event?
In most major jurisdictions including the US, trading one cryptocurrency for another (e.g., swapping ETH for SOL) is a taxable disposal requiring you to calculate capital gain or loss.
Transferring crypto between your own wallets is NOT a taxable event, though network gas fees can often be added to the asset's cost basis.
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