Lesson · Facts First

Crypto for Investors

Every trade is a taxable event in the US - the investors who survive audit are the ones who can reconstruct every lot.

The facts

  • 01Cryptocurrency is property for tax purposes (IRS Notice 2014-21): selling, spending, or trading one coin for another realizes gain or loss each time.
  • 02Since 2023 broker Form 1099-DA phase-in and 2025+ basis reporting requirements mean exchanges report cost basis - keep your own records anyway.
  • 03Held over one year, gains use long-term rates; under one year, ordinary income rates - the holding period is real money.
  • 04Wash-sale rules do not currently apply to property that is not a security - but proposed rules and the 2026 legislative environment keep shifting; do not build a strategy on the gap.

Sources

  • IRS Notice 2014-21
  • IRS: Digital Assets guidance
  • Form 1099-DA (digital asset proceeds) rules

Educational content only — not tax, legal, investment, or VA-benefits advice. Figures verified against the cited sources for 2026; confirm your own situation with a qualified professional before acting.

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