Key Changes in U.S. Crypto Tax Policies for 2025
- The IRS requires taxpayers to report crypto transactions on Schedule D of Form 1040.
- Starting January 1, 2025, taxpayers must track their cost basis by individual wallet.
- Form 1099-DA will be used by exchanges to report user transactions and gross proceeds.
- Failure to report can result in fines up to $100,000 and potential criminal charges.
- NFTs may be taxed as collectibles with a higher long-term capital gains rate of 28%.
Increased IRS enforcement in 2025 mandates detailed reporting of crypto transactions, including wallet-specific cost basis tracking and the use of Form 1099-DA for exchange-reported activities. Penalties for non-compliance are severe, emphasizing the importance of accurate tax filing.
Source (2.6)https://decrypt.co/resources/us-crypto-taxes-in-2025-what-you-need-to-know?rand=52368
