US cryptocurrency tax solved

Simplify your crypto tax return and let Recap crunch the numbers for you. Recap calculates your long term and short term capital gains and auto generates forms 8949 and 1040 Schedule D ready for the IRS.

US cryptocurrency tax reports

The basics of crypto tax for US individuals

The lowdown on what’s taxable, how it should be treated, how and where to report and what rate of tax you can expect to pay.

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Fast crypto tax facts

Tax authority
IRS (Internal Revenue Service)
Current filing tax year
2021
Filing tax year dates
1 January 2021 to 31 December 2021
Filing deadline
15 April 2022
Applicable taxes
Capital Gains Tax, Income Tax & others
Capital Gains rates
0% - 20% long term, 10% - 37% short term
Declared by
Annual Tax Return
Useful links

What's actually taxable?

From selling to airdrops, here are the major crytpo activities that need to be considered for tax in the US.

Selling crypto for fiat
Selling crypto for fiat
Trading crypto to crypto
Trading crypto to crypto
Paying for goods & services with crypto
Paying for goods & services with crypto
Mining crypto
Mining crypto
Earning crypto
Earning crypto
Rewards from staking, lending & referrals
Rewards from staking, lending & referrals
Gifting or donating crypto
Gifting or donating crypto
Airdrops
Airdrops

How Recap works

1

Import your data

Connect to the top exchanges, upload CSV files and import transactions manually.

2

Check your gains and losses

See all your crypto holdings and view all historic trades and transactions. Check your capital gains.

3

Download your tax report

Download your tax reports or TurboTax import files.

How it works

Optimise your taxes
with your preferred tax method

FIFO
First In, First Out means that assets acquired first are disposed of first.
LIFO
Last In, First Out means that assets acquired last are disposed of first.
Highest Cost
Highest Cost means assets acquired with the highest value are disposed of first, which minimizes overall gains.
Lowest Cost
Lowest Cost means assets acquired with the lowest value are disposed of first, which maximizes overall gains.

What's the FMV?

FMV means Fair Market Value and in line with IRS guidance our FMV method finds the most recent price on the exchange where you traded.

Sounds standard?... You’d be surprised! It makes us one of the most accurate tax calculators on the block.

IRS - FAQ on Virtual Currencies (Q24, Q25)

What's the FMV?

Frequently asked questions

How should I answer "The Cryptocurrency Question" on Schedule 1?
Whether you agree or disagree with tax on crypto you need to answer this new question truthfully.
How should I keep track of my crypto trades?
One of the most important things to do in the crypto space is to keep records of all of your trades and activity. At Recap, we recommend always backing up your exchange transaction CSV files and keeping these backed up in multiple places. It is also important to keep this data safe and encrypted to ensure your own security.
What cost basis method should I use?
There are different approaches to cost basis; the most well known are FIFO, LIFO, SpecID, HIFO and LOFO. You should choose one method and use it consistently to calculate your capital gains.
Are trading fees tax deductible?
Incidental costs of purchase and disposal can be deducted from capital gains. There isn’t much guidance from the IRS yet but we would assume related costs such as Trading Fees are acceptable but transfer fees are not.

Don't trade security for convenience.
Have both with Recap.