Crypto Trading Return Calculator
BTC ~$81,286 (May 5, 2026).
Holding period
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How to use
- 1 Enter buy price (cost basis per coin in USD at the time of purchase).
- 2 Enter quantity owned (decimals OK — e.g., 0.5 BTC, 2.34 ETH).
- 3 Enter current price per coin (or selling price if calculating realized gain).
- 4 Enter your federal capital gains rate. Long-term: 0% (income < $48,350 single), 15% (under $533,400), 20% (above). Short-term: your marginal income bracket.
- 5 Toggle Short-Term if held ≤1 year (ordinary income rates apply). Click Calculate to see ROI, tax, and after-tax profit.
About Crypto Trading Return Calculator
FAQ
Q How is crypto profit taxed in 2026?
Held >1 year: long-term capital gains 0/15/20% (income-dependent). Held ≤1 year: short-term ordinary rates 10-37%. Plus 3.8% NIIT for MAGI >$200K/$250K. Plus state tax (0-13%). Net retention typically 60-85% of gross profit.
Q When does crypto qualify for 0% capital gains rate?
When total taxable income (including the gain) stays under $48,350 single / $96,700 MFJ in 2026. Major retirement-planning opportunity — sell appreciated crypto in low-income years (sabbatical, retirement gap before SS/RMDs).
Q Do I owe tax on crypto-to-crypto swaps?
YES. Swapping BTC for ETH is a taxable disposition (no §1031 like-kind for crypto since 2018). You sell BTC at FMV (capital gain/loss) and buy ETH. Track USD value of both at moment of swap.
Q How do I report crypto on tax return?
Form 8949 (each disposition) + Schedule D. Brokers issue 1099-DA: 2025 gross proceeds, 2026 includes cost basis. Compare 1099-DA to your records — IRS automatically matches. Mismatches trigger CP2000 notices.
Q Does the wash-sale rule apply to crypto?
NO in 2026. IRC §1091 wash-sale only applies to "stock or securities" — crypto is property. You can sell BTC at a loss, immediately buy back, and lock in the deduction. Major loophole for tax-loss harvesting.
Q Can I deduct crypto losses?
YES. Capital losses offset capital gains dollar-for-dollar. Net capital loss up to $3,000/year offsets ordinary income ($1,500 if MFS). Rest carries forward indefinitely. Combined with no wash-sale rule = powerful tax-loss harvesting strategy.
Q How are staking rewards taxed?
Ordinary income at fair market value on receipt — when you have "dominion and control" (Rev. Rul. 2023-14). Each reward creates a new tax lot at that FMV. When you later sell, recognize gain/loss from there. Reported on Schedule 1 line 8v.
Q Are there any tax-free crypto strategies?
Three: (1) Hold long-term in 0% LTCG bracket. (2) Donate appreciated crypto to charity (FMV deduction + skip cap gains). (3) Hold crypto in self-directed IRA (tax-deferred or tax-free with Roth). Not tax-free but very efficient: borrow against crypto rather than selling.
Official resources
IRS — Digital Assets Hub
Internal Revenue Service official guide to all crypto and digital asset tax rules including Form 1099-DA.
IRS — Notice 2014-21 Crypto Property Treatment
Foundational IRS guidance establishing virtual currency is property for federal tax purposes.
IRS Form 8949 — Sales and Other Dispositions
Internal Revenue Service Form 8949 for reporting crypto sales, swaps, and other taxable dispositions.
IRS Form 1099-DA Instructions
Official IRS Form 1099-DA instructions for 2026 broker cost basis reporting requirements.