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.
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.
Fast crypto tax facts
What's actually taxable?
From selling to airdrops, here are the major crytpo activities that need to be considered for tax in the US.
How Recap works
Import your data
Connect to the top exchanges, upload CSV files and import transactions manually.
Check your gains and losses
See all your crypto holdings and view all historic trades and transactions. Check your capital gains.
Download your tax report
Download your tax reports or TurboTax import files.
Optimise your taxes
with your preferred tax method
- First In, First Out means that assets acquired first are disposed of first.
- 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.
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.