Investing in Crypto or Bitcoin? You have tax implications In 2025
Investing in cryptocurrency can have tax implications. In 2025, crypto exchanges must report transactions using Form 1099-DA. Gains are taxed based on holding period: short-term (0-1 year) at regular income rates, long-term (over 1 year) at capital gains rates. Crypto-to-crypto trades are taxable, and all transactions must be reported on Form 8949 and summarized on your tax return