How the IRS taxes crypto
The IRS treats cryptocurrency as property. Selling, trading one coin for another or spending crypto can create a capital gain or loss. Crypto earned from staking, mining or rewards is generally taxed as income when you receive it. Every Form 1040 also asks whether you had digital asset activity during the year.
What the new 1099-DA form means for you
Starting with 2025 transactions, crypto brokers report your sales to the IRS on Form 1099-DA. For many 2025 sales the form shows the gross proceeds but not what you paid, so the gain can look much bigger than it really is. We use your own records to report the correct cost and gain.