When you trade, sell, or use cryptocurrency, digital assets like Bitcoin or Ethereum that are treated as property by the IRS. Also known as digital currency, it triggers taxable events just like stocks or real estate. The IRS doesn’t care if you bought Bitcoin on Coinbase or swapped Dogecoin on a decentralized exchange—every trade counts. And in 2025, Form 8949, the IRS form used to report capital gains and losses from crypto transactions. It’s the official document that ties your wallet activity to your tax return. This isn’t optional. If you moved crypto in 2024, you need to file it.
The new Form 1099-DA, a mandatory reporting form crypto exchanges must issue to users and the IRS starting in 2025. It’s designed to track every sale, swap, and spend. changes the game. Before, you had to guess what you owed based on scattered exchange statements. Now, the IRS gets a full picture—so if your records don’t match, you’re on the hook. That’s why crypto capital gains, the profit you make when you sell or trade crypto for more than you paid. It’s the core number the IRS is watching. matters more than ever. Did you buy 0.5 BTC for $20,000 and sell it for $30,000? That’s a $10,000 gain. Even if you used that BTC to buy a laptop, it’s still a taxable event. Wallet-by-wallet tracking isn’t just smart—it’s required. You can’t just average your buys anymore. The IRS wants each transaction logged: what you bought, when, for how much, and what you traded it for.
Finance & Tax isn’t about guessing. It’s about accuracy. Whether you’re a casual trader or hold crypto long-term, the rules apply the same. Missing one trade can trigger an audit. Getting it right means keeping clear records, understanding what counts as income versus capital gain, and knowing how to fill out Form 8949 without the confusion. Below, you’ll find a detailed breakdown of Form 8949 for 2025, what the IRS now expects from you, and how the new 1099-DA form impacts your filing. No theory. No fluff. Just what you need to file correctly and avoid penalties.
Know exactly when to hire a crypto tax lawyer to avoid IRS audits, penalties, or criminal charges. Learn the red flags, legal risks, and how to protect yourself before it's too late.
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Form 8949 is the IRS form you must use to report all crypto transactions in 2025. Learn what trades need reporting, how wallet-by-wallet accounting works, and why Form 1099-DA changes everything.
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