A year-end crypto tax review. Before December 31.

Review the year while you can still act

Once December 31 passes, your 2026 crypto results are fixed. The return reports the sales, trades and income that already happened; it cannot change how a sale was identified or when it took place. A review in November or December shows where you stand while records are still easy to download and questions can still be answered.

This guide is general information for calendar-year individual investors. It explains what to check, not whether to buy or sell. Investment decisions and tax treatment depend on your full circumstances.

List what you have already realized in 2026

Selling crypto for dollars is not the only disposition. Exchanging one digital asset for another and using crypto to pay for goods or services are also transactions with a gain or loss. Income you received in crypto, such as payment for services or rewards, is a separate item with its own value at receipt.

Moving units between accounts you own is generally not a sale, but it moves the history. Keep the transfer records so each unit stays connected to its original acquisition.

• Exports from each exchange covering January 1, 2026 to today
• Wallet histories for the addresses you control
• Transfers between your own accounts, with dates and amounts
• Crypto income received in 2026 and its dollar value when received

Check each holding period

A gain or loss is generally long-term when you held the asset for more than one year before disposing of it, and short-term when you held it for one year or less. Net short-term gains are taxed at ordinary income rates, so the acquisition date behind each lot matters.

When units were transferred before the sale, use the original acquisition date from the earlier platform or wallet rather than the date they arrived in the account that sold them.

Confirm how each sale identified the units

Since January 1, 2026, the rule for units held by a broker has changed. To choose specific units, you must tell the broker which units to sell no later than the date and time of the sale, using identifiers the broker accepts, such as purchase date or price. If you do not, the default rule treats the earliest units acquired in that account as sold first. When a broker offers only one method, that method applies as your standing instruction.

A spreadsheet note made after the sale does not change the identification for broker-held units. For a wallet you control, the identification belongs in your own records no later than the sale, together with records showing the units left that wallet.

Brokers must report basis for certain digital asset transactions on or after January 1, 2026. Your Form 1099-DA for 2026 will reflect the identification the broker applied, so compare it with your own records before filing.

• The identification method or standing order set on each platform
• Any lot instructions you gave before a sale, with confirmations
• Sales where your records assume different units than the platform applied

Understand how losses are used

Capital losses first offset capital gains. If losses exceed gains, the deduction against other income is limited to the lesser of $3,000 ($1,500 if married filing separately) or your net loss; the rest carries forward to later years.

A loss needs a completed disposition and a supported basis. An unknown purchase price is a records question, not a loss.

Publication 550 applies the wash sale rule to stock and securities. Shares of an exchange-traded fund are securities, so a loss sale followed by a repurchase within 30 days needs that rule considered. For other digital assets, review the current rules before relying on a loss followed by a quick repurchase.

Look at payments before January 15

A large gain can change what you should have paid during the year. The last 2026 estimated payment is due January 15, 2027. If you file your 2026 return and pay the balance by January 31, 2027, that January payment is not required.

Payroll withholding can still be adjusted before year-end. California has its own payment calendar, covered in the California estimated-tax guide in Resources.

Save records while the platforms still show them

Download annual statements and full transaction exports now, especially from accounts you plan to close. A closed account or a discontinued platform can make an old purchase hard to prove next spring.

• Full-history exports, not only the 2026 summary
• Wallet addresses and the platforms they connect to
• Confirmations of lot instructions and standing orders
• Estimated-payment and withholding records for 2026

Bring a compact year-end packet

A short packet makes a consultation specific: the realized results by account, the identification method each platform applied, open records questions and the payments made so far. Nancy can then focus on the question you need answered before the year closes.

Common questions