Crypto Tax Guide for US Investors 2026: Every Rule Explained

The IRS treats crypto as property. Every trade, swap, and DeFi interaction may be taxable. This guide covers every US crypto tax rule, minimization strategies, and reporting requirements.

The IRS has treated cryptocurrency as property since 2014. This means every disposal (sale, trade, exchange, spending) is potentially a taxable event. In 2026, with expanded 1099-DA reporting requirements, the IRS has unprecedented visibility into crypto activity.

What Is a Taxable Event

What Is NOT a Taxable Event

Tax-Loss Harvesting in Crypto

Unlike stocks, crypto is not subject to the wash-sale rule (as of 2026). You can sell Bitcoin at a loss, immediately buy it back, and claim the loss for tax purposes. This "tax-loss harvesting" can offset gains from other crypto sales, reducing your tax bill. Platforms like Koinly and CoinTracker automate loss harvesting recommendations.

DeFi-Specific Tax Issues