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Historically, compliance with 2025 crypto taxes has been low. An IRS review from 2023 suggested a mere 25% voluntary compliance rate among crypto investors. This trend is set to change dramatically. Starting with the 2025 tax year, new rules bring centralized exchanges into the reporting fold.
If you used a centralized exchange like Coinbase this year, listen up. The exchange must now report your sales and exchanges to the IRS. This is done using the new Form 1099-DA (Digital Assets). You will receive your copy by February 17, 2026. This is crucial for filing your 2025 crypto taxes.
This new reporting does not create new tax obligations. However, it makes non-compliance much harder. If your filed return information does not match the 1099-DA, the IRS’s Automated Underreporter system may flag it. This will likely result in a notice to correct the mismatch. The 1099-DA also simplifies reporting for many investors.
Certain transactions are not reported on Form 1099-DA, but you must still report them.
For 2025, centralized exchanges only report gross proceeds. They do not report your cost basis. You must calculate the cost basis yourself. This calculation determines your final capital gains or losses. Starting in 2026, cost basis reporting will begin. But it only applies to specific assets bought and sold on the same exchange.
Several other items are exempt from 1099-DA reporting. Qualified stablecoin sales under $10,000 are not reported. NFT sales below $600 are also excluded. Transfers of wrapped tokens are another key exception. You remain legally obligated to report all of these items on your tax return.
Transactions on decentralized exchanges (DeFi) are not subject to this third-party reporting. You control your holdings on these platforms. You will not receive a 1099-DA from a DeFi exchange. Still, you must report all taxable DeFi transactions. Proper record-keeping is essential for all your 2025 crypto taxes.
The tax treatment for capital gains and losses is uniform. Losses can offset your gains in any asset class. For example, stock losses can offset crypto gains. If losses exceed gains, you can deduct up to $3,000 against ordinary income. Any remaining losses can be carried forward.
Historically, compliance with 2025 crypto taxes has been low. An IRS review from 2023 suggested a mere 25% voluntary compliance rate among crypto investors. This trend is set to change dramatically. Starting with the 2025 tax year, new rules bring centralized exchanges into the reporting fold.
If you used a centralized exchange like Coinbase this year, listen up. The exchange must now report your sales and exchanges to the IRS. This is done using the new Form 1099-DA (Digital Assets). You will receive your copy by February 17, 2026. This is crucial for filing your 2025 crypto taxes.
This new reporting does not create new tax obligations. However, it makes non-compliance much harder. If your filed return information does not match the 1099-DA, the IRS’s Automated Underreporter system may flag it. This will likely result in a notice to correct the mismatch. The 1099-DA also simplifies reporting for many investors.
Certain transactions are not reported on Form 1099-DA, but you must still report them.
For 2025, centralized exchanges only report gross proceeds. They do not report your cost basis. You must calculate the cost basis yourself. This calculation determines your final capital gains or losses. Starting in 2026, cost basis reporting will begin. But it only applies to specific assets bought and sold on the same exchange.
Several other items are exempt from 1099-DA reporting. Qualified stablecoin sales under $10,000 are not reported. NFT sales below $600 are also excluded. Transfers of wrapped tokens are another key exception. You remain legally obligated to report all of these items on your tax return.
Transactions on decentralized exchanges (DeFi) are not subject to this third-party reporting. You control your holdings on these platforms. You will not receive a 1099-DA from a DeFi exchange. Still, you must report all taxable DeFi transactions. Proper record-keeping is essential for all your 2025 crypto taxes.
The tax treatment for capital gains and losses is uniform. Losses can offset your gains in any asset class. For example, stock losses can offset crypto gains. If losses exceed gains, you can deduct up to $3,000 against ordinary income. Any remaining losses can be carried forward.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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