KoinlyticsThis is not tax advice. It is a map of what most jurisdictions treat as taxable in crypto. Rules change; consult a local specialist for anything material.
The general framework
Most jurisdictions treat crypto as property (US), or as a capital asset (UK, most EU), or in some cases as speculative or investment income (Germany, if held long enough it's tax-free). Every disposal is a taxable event.
What counts as a disposal
- Selling crypto for fiat.
- Trading one crypto for another.
- Spending crypto on goods or services.
- Receiving airdrops, staking rewards, mining rewards (usually as income at fair market value at receipt).
- DeFi: adding/removing liquidity often counts as a disposal (depends on jurisdiction).
What usually doesn't
- Buying crypto with fiat (cost basis established).
- Transferring crypto between your own wallets.
- Holding.
- Gift below annual exclusion (US: $18k/year 2024).
Cost basis methods
- FIFO. First in, first out. Default in most places. Simplest.
- LIFO. Last in, first out. Sometimes allowed. Can reduce tax if newest lot has higher cost.
- Specific ID. Pick exactly which lot you're selling. Most tax-efficient but requires meticulous records.
- Average cost. Common in UK (share-pool). Not typically allowed in US.
US specifics
- Short-term (< 1 year hold): taxed as ordinary income (up to 37%).
- Long-term (> 1 year hold): 0%, 15%, or 20%.
- 1099-DA form (starting 2026): brokers report your crypto sales to IRS.
- Staking rewards taxed at receipt (per 2023 revenue ruling), not at sale.
- Wash sale rule does NOT currently apply to crypto (yet). Losses can be harvested and immediately rebought.
EU / MiCA context
Each country still sets its own tax code, MiCA is regulation not taxation. Germany: crypto held > 1 year is tax-free. Portugal: was tax-free, changed 2023. Spain, France: capital gains rates 19-30%.
Practical setup
- Use Koinly, CoinTracker, or Accointing from day one. Retrofitting years is painful.
- Export every exchange's full history before the year ends.
- Save every stablecoin swap. They're taxable events even if the dollar value is the same.
- Keep separate wallets for long-term hold vs trading. Simplifies specific-ID accounting.