Taxable crypto events

Tax on crypto is a law and a lantern in the dark; it shows where profit walks and where debt lies. A taxable event is any move that changes your tax bill. Selling a coin is a taxable event. Trading one token for another is a taxable event. Spending crypto for goods or services is a taxable event. Receiving crypto as payment, rewards, staking yield, mining rewards, or airdrops is often taxable as income when you control the asset. The U.S. treats most crypto as property. That means gains and losses work like stocks. Your cost basis is what you paid or what was reported to you when you received the asset. When you sell or spend, your gain equals the sale value minus your basis. Short-term gains come from assets held a year or less and are taxed at ordinary income rates. Long-term gains come from assets held longer and usually get lower rates. Losses can offset gains and some ordinary income up to set limits, so tax loss harvesting can be powerful. Unlike many stocks, crypto is generally not subject to the wash sale rule today, so you can sell to lock a loss and buy back quickly; that may change and you should watch law updates. Not every move is taxable. Moving coins between your own wallets is not a taxable event. Gifting crypto can be non-taxable for the giver until thresholds apply and may create reporting or basis complications for the receiver. Inheritances often get a stepped-up basis but require careful records. Records matter more than luck. Keep timestamps, transaction hashes, exchange names, wallet addresses, and the fiat value at the time of each event. Choose an accounting method and apply it consistently; specific identification can lower taxes if you can prove which units you sold, while FIFO is common when records are thin. Convert values to a stable fiat reference at the transaction time and note the source of the rate. Some activities may create self-employment income or require estimated tax payments. If you run mining rigs or provide continuous services that pay in crypto, treat that as business income and track expenses and deductions. For most people, specialized crypto tax software helps gather wallet and exchange history, calculate gains and income, and produce the reports needed to file. Laws and enforcement change, so keep learning and consider a tax professional for complex situations. Protect your assets with secure wallets and keep clean books to avoid surprises when tax season comes knocking.