Bitcoin tax & accounting, made clear.
Plain-language guides to cost basis, capital gains, Form 1099-DA, Form 8949, and crypto tax reporting — plus gifting, inherited Bitcoin, and crypto-backed loans.
Latest Bitcoin tax & accounting guides
Bitcoin, explained — and why the tax rules matter
Bitcoin is digital money with a fixed supply of 21 million coins, secured by a public ledger that no company or government controls. Value moves peer-to-peer, around the clock, across borders.
For U.S. tax purposes, though, Bitcoin is generally treated as property. Selling, trading, or spending it can trigger capital gains, and every disposition depends on accurate cost basis records.
Fixed supply
Issuance is capped by code. Scarcity is enforceable — not a policy promise.
Always-on settlement
No banking hours. The network settles on weekends, holidays, and across time zones.
Taxed like an asset
Dispositions are measured against basis, so gains and losses follow every sale or swap.
Basis is everything
Dates, amounts, and wallets decide your result. Brokers’ forms won’t always have them.
Crypto tax reporting topics, organized
Start with the questions Bitcoin holders search most — from cost basis and capital gains to Form 1099-DA, gifting, inheritance, and crypto loans.
Bitcoin tax FAQ
Quick, careful answers to the Bitcoin tax questions people ask most. Each links to a full guide.
Browse every guide →Is Bitcoin taxed as property or currency?
For U.S. federal tax purposes, Bitcoin is generally treated as property, not currency. Selling, trading, or spending it can create a capital gain or loss measured against your cost basis.
Read more: Bitcoin is property for tax purposes →Do I owe tax just for holding Bitcoin?
No. Simply buying and holding Bitcoin is generally not a taxable event. Tax usually arises when you sell, trade, or spend it, or when you receive Bitcoin as income.
Read more: moving Bitcoin between your own wallets →What is Form 1099-DA?
Form 1099-DA is the information return crypto brokers use to report digital asset sales. It may not show complete cost basis, so reconcile it with your own records before filing.
Read more: Form 1099-DA explained →Where do Bitcoin sales go on my tax return?
Bitcoin sales and dispositions are generally reported on Form 8949, with totals carried to Schedule D. Each lot needs dates acquired and sold, proceeds, and cost basis.
Read more: Form 8949 basics for Bitcoin sales →Is borrowing against Bitcoin taxable?
Taking a loan secured by Bitcoin is generally not a sale on its own. Liquidations, collateral transfers, or loan terms that shift ownership can still create taxable events.
Read more: crypto-backed loan tax basics →What basis do I get for gifted or inherited Bitcoin?
Gifted Bitcoin usually keeps the giver’s cost basis (carryover basis). Inherited Bitcoin generally receives a basis stepped up to fair market value at the date of death.
Read more: inherited Bitcoin cost basis →Every Bitcoin tax & accounting guide
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Plain-language notes on Bitcoin accounting, crypto tax reporting, cost basis, and capital gains for U.S. holders.
