Crypto to Fiat Tax
Calculate tax when selling crypto for USD
Selling crypto for USD is a taxable event. You must report all sales to the IRS.
Sale Details
No sales added
Tax Rates
Tax Summary
Sale Breakdown
| Crypto | Proceeds | Basis | Gain | Type |
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Selling Crypto FAQ
Can I avoid tax by transferring to a wallet first?
No. Wallet transfers aren't taxable, but when you eventually sell for fiat, that sale is taxable based on original purchase date.
What if I withdraw to my bank in batches?
Each crypto→USD conversion is a separate taxable event. The bank withdrawal is just moving USD - not taxable itself.
I sold on Coinbase - will they report it?
Yes. Exchanges send 1099s to IRS. They report your proceeds. You're responsible for knowing your cost basis.
Can losses offset my salary income?
Capital losses first offset capital gains. Excess losses can offset up to $3,000 of ordinary income per year. Rest carries forward.
What's the wash sale rule?
Currently doesn't apply to crypto. You can sell at a loss and immediately rebuy. But proposed legislation may change this.
Do stablecoin conversions count?
BTC→USDC is a crypto-to-crypto swap (taxable). USDC→USD is technically a sale, but usually no gain since USDC ≈ $1.
When do I pay the tax?
Tax is due with your annual return (April). Large gains may require quarterly estimated payments to avoid penalties.
I don't know my cost basis - help!
Check exchange records, wallet history, bank statements. Worst case: assume $0 basis (100% gain). Some use "reasonable basis" methods.
Is there a threshold below which I don't report?
No. All sales must be reported regardless of amount. Even $1 gain is technically reportable on Form 8949.
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