IRS Delays Implementation of Crypto Tax Rules to 2026, Offering Relief to Brokers and Investors
The U.S. Internal Revenue Service (IRS) has announced a one-year delay in the implementation of new tax reporting requirements for cryptocurrency transactions.
Initially scheduled to take effect on January 1, 2025, the rules will now commence on January 1, 2026. The delay grants brokers additional time to adapt their systems to the updated regulatory framework.
Understanding the New Reporting Rules
The postponed regulations focus on determining the cost basis for cryptocurrency assets held and sold on centralized platforms. Cost basis plays a critical role in calculating gains or losses from asset sales for tax purposes. Under the new rules, if investors do not specify an accounting method, the default approach will be First-In,…
