Crypto Capital Gains Tax Calculator: Estimate Your Tax Bill
Learn How to Report Your Crypto Gains and Losses to the IRS
The IRS has created a new crypto capital gains tax calculator to help taxpayers estimate their tax bill from a crypto sale. The calculator is available on the IRS website and can be used to calculate both short-term and long-term capital gains and losses.
How to Use the Crypto Capital Gains Tax Calculator
To use the calculator, you will need to provide the following information:
- The date you acquired the crypto
- The date you sold the crypto
- The purchase price of the crypto
- The selling price of the crypto
How to Report Your Crypto Gains and Losses to the IRS
If you have sold crypto during the year, you will need to report your gains and losses to the IRS on your tax return. You will need to use Form 8949 to report your capital gains and losses.
Calculating Your Short-Term and Long-Term Capital Gains and Losses
The length of time you hold crypto before selling it will determine whether you have a short-term or long-term capital gain or loss. Short-term capital gains and losses are taxed at your ordinary income tax rate. Long-term capital gains and losses are taxed at a lower rate.
To calculate your short-term capital gain or loss, subtract the purchase price of the crypto from the selling price. To calculate your long-term capital gain or loss, subtract the adjusted basis of the crypto from the selling price.
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