Crypto Capital Gains: What You Need to Know
What is a capital gain?
A capital gain occurs if you sell a crypto for more than your initial investment. For instance, if you buy one bitcoin for $20,000 and sell it for $50,000, you have made $30,000 of taxable income.
How does the IRS tax crypto?
Generally, the IRS taxes cryptocurrency like property and investments, not currency. This means all transactions from selling coins to using them to buy goods and services are taxable events.
How can I estimate my crypto capital gains tax?
You can estimate what your tax bill from a crypto sale will look like using the crypto capital gains tax calculator below. The calculator is for sales of crypto in 2023 with taxes owed in 2024.
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