receipt_long TAX TOOLS

Crypto Tax Estimator

Calculate your estimated tax liability on crypto trades.

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Overrides bracket if selected (Uses 15% standard LKG rate).
How It Works: Estimates capital gains tax liability based on the difference between sales proceeds and cost basis.

Key Inputs:
  • Cost Basis: Total original purchase price of assets.
  • Proceeds: Total value received upon sale.
  • Tax Bracket: Your marginal income tax rate (Short Term).
  • Long Term: Check if held > 1 year (applies 15% rate).
Total Profit
$7,000
Estimated Tax Owed
$1,680
Net after Tax
$5,320

Crypto Taxes Explained: What You Need to Know

In the eyes of the IRS (and many other tax authorities), cryptocurrency is treated as property, not currency. This means every trade, sale, or swap is a taxable event.

Taxable vs. Non-Taxable Events

Short-Term vs. Long-Term Gains

Holding time matters significantly for your tax bill:

Short-Term: Assets held for less than 1 year. Taxed as ordinary income (10% - 37%).
Long-Term: Assets held for more than 1 year. Taxed at favorable capital gains rates (0%, 15%, or 20%).

FIFO Method

Most calculators (including this one) use FIFO (First-In, First-Out). This assumes the first coins you bought are the first ones you sold. This is the standard method, though LIFO (Last-In, First-Out) or HIFO (Highest-In, First-Out) can sometimes lower your tax bill if used consistently.

Disclaimer: We are not tax professionals. This tool provides estimates only. Consult a CPA for accurate filings.