Crypto Taxes in 2025: What You Need to Know

Current State of Crypto Tax Compliance

• Only 25% of crypto investors pay taxes on time (2023 IRS review).
• Big changes coming in 2025.

2025 Reporting Requirements

• Centralized exchanges will report transactions to the IRS.
• Form 1099-DA will include:
• Sales and exchanges.
• Sent to the IRS and investors by January 30, 2026.
• No new tax obligations, but easier for IRS to track compliance.

What’s Reported?

• 2025:
• Only gross proceeds of crypto sales.
• Cost basis (what you paid) not reported.
• 2026:
• Cost basis reported only if:
• Purchased and sold on the same exchange.
• Asset held entirely by the exchange.
• No transfers allowed.

Exceptions & Special Cases

• Not reported on 1099-DA:
• Stablecoins, NFTs, wrapped tokens.
• Still must be reported on tax returns.
• Crypto ETFs reported on Form 1099-B (like stocks).
• Decentralized exchanges (DeFi) not subject to third-party reporting.

Tax Treatment & Reporting

• Same rules for stocks and crypto:
• Losses offset gains.
• Excess losses deductible up to $3,000 per year.
• Remaining losses carried forward.
• Cross-asset deductions allowed:
• Stock losses can offset crypto gains (and vice versa).

Key Takeaways

• Check 1099-DA for accuracy (first year of reporting).
• Report all taxable transactions, even if not on 1099-DA.
• DeFi and NFTs still require manual reporting.