The price of bitcoin is soaring. Here’s how to reduce crypto taxes
Amid the latest bitcoin rally, crypto investors face a looming deadline that could impact future taxes — and they must take action before Jan. 1, 2025.
The U.S. Department of the Treasury and IRS in July unveiled final tax reporting rules for digital asset brokers, with phased-in guidelines.
Starting in 2026, brokers will use Form 1099-DA to report gross proceeds from 2025 sales. In 2027, brokers will include “cost basis,” or the original purchase price for sales in 2026.
Basis is important because, generally, if you can’t prove your basis, the IRS considers it zero — which can inflate gains. Your profit is the sales price minus your…
