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Capital Gain / Loss
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Estimated Tax Owed
$0
Net After Tax
$0
Estimate your capital gain or loss on a cryptocurrency sale, plus estimated tax owed based on your holding period.
$0
Estimated Tax Owed
$0
Net After Tax
$0
Subtract your total cost basis (purchase price plus fees) from your total sale proceeds to get your capital gain or loss, then apply the tax rate that matches your holding period: short-term (one year or less) or long-term (over one year).
Capital Gain = Sale Proceeds − Cost Basis
The IRS classifies cryptocurrency as property, meaning the same capital gains framework that applies to stocks and real estate also applies to Bitcoin, Ethereum, and other digital assets. Every disposal, selling for cash, trading for another crypto, or spending it on goods, is a taxable event that requires calculating a gain or loss relative to your cost basis.
Assets held for one year or less before disposal are taxed as short-term capital gains at your ordinary income tax rate, which can be significantly higher than long-term rates. Assets held for more than one year qualify for long-term capital gains rates, which are generally lower. This makes holding period a meaningful lever in tax planning, not just an investment decision.
If you've bought crypto at different prices over time, you need a consistent accounting method (like FIFO, first-in-first-out) to determine which specific units were sold and at what cost basis. Transfers between wallets and exchanges, staking rewards, and airdrops can all complicate basis tracking further, so dedicated crypto tax software is often worth using once your transaction history grows complex.
This calculator provides a simplified estimate using a single tax rate you supply. Actual tax liability depends on your full income picture, applicable brackets, state taxes, and specific transaction history. For a definitive calculation, consult the IRS digital asset guidance or a qualified tax professional.
The IRS treats cryptocurrency as property, not currency. Selling, trading, or spending crypto for more than its cost basis triggers a capital gain, taxed as short-term (ordinary income rates) if held one year or less, or long-term (preferential rates) if held over one year.
Cost basis is typically the purchase price plus any transaction fees paid to acquire the asset. Accurate cost basis tracking across multiple purchases and exchanges is essential for correct gain/loss reporting.
Yes. Trading one cryptocurrency for another is a taxable event in the US, treated as selling the first asset (triggering gain or loss) and immediately buying the second at its fair market value.
Estimate your overall tax bracket with the Tax Bracket Calculator, or check investment growth with the Compound Interest Calculator.
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