Crypto Taxes 2024: All You Need to Know

May 3, 2024
7 min read

As cryptocurrencies continue reshaping the financial landscape in 2025, tax compliance has become more critical than ever. Regulators worldwide, especially the IRS in the United States, have expanded reporting requirements and introduced new forms to ensure accurate reporting of digital asset activity.

For both new investors and seasoned traders, understanding how cryptocurrency is taxed can protect you from penalties and optimize your overall tax liability. This guide explains the essentials of crypto taxes in 2025, the forms you need, key deadlines, strategies to manage liabilities, and Bitunix-specific reporting guidance.

Crypto Taxes

Understanding Cryptocurrency Taxation Basics

For tax purposes in the United States, cryptocurrency is treated as property rather than currency. This means that every taxable event, such as selling, trading, or using cryptocurrency to make purchases, must be reported just as you would with stocks or other capital assets.

A taxable event occurs whenever you dispose of cryptocurrency, including:

Selling for fiat currency such as USD or EUR
Trading one cryptocurrency for another
Using cryptocurrency to purchase goods or services
Earning income from mining, staking, or rewards

Each of these actions can result in either a capital gain or a capital loss, which must be reported.

What Counts as a Taxable Event?

In the eyes of many tax authorities, including the IRS in the United States, cryptocurrencies are treated as property. This means that standard property tax rules apply to transactions involving cryptocurrencies. A taxable event in the context of crypto occurs whenever you dispose of your cryptocurrency in any way—whether that’s selling it for fiat, trading it for another crypto, or using it to buy goods and services.

Which Tax Forms Are Used for Cryptocurrency?

Tax reporting for cryptocurrency requires different forms depending on the type of activity.

Form 8949: Used to list each sale or disposition of crypto. You must include acquisition date, sale date, cost basis, and proceeds for every transaction.
Schedule D (Form 1040): Summarizes your overall capital gains and losses, including those from crypto reported on Form 8949.
Form 1040: The main U.S. income tax form. It includes the virtual currency question on the first page, requiring all taxpayers to declare if they engaged in digital asset activity.
Form 1099 Series:
- 1099-MISC: Reports staking, referral, or other miscellaneous crypto income.
- 1099-B: Reports sales of crypto through brokers or exchanges.
- 1099-DA: Starting in 2025, this form is specifically for digital asset transactions. Some U.S. exchanges will issue it, but overseas exchanges such as Bitunix may not.
Schedule C: If you receive crypto as business income, you must report it here.

How to Calculate Crypto Gains and Losses

Identify the Cost Basis This is the original amount you paid for the cryptocurrency, including any fees.
Determine the Fair Market Value This is the value of the crypto in fiat currency at the time of the transaction.
Calculate the Gain or Loss Subtract the cost basis from the fair market value. A positive number is a gain, while a negative number is a loss.

Table of Contents

Reporting and Paying Crypto Taxes

Accurate record-keeping is essential for compliance. You should track:

The date of each transaction
The value of the cryptocurrency in fiat at the time of the transaction
The purpose of the transaction (sale, trade, payment)
The other party involved, if applicable

You will then use this information to complete Form 8949, summarize totals on Schedule D, and report income on Form 1040.

Necessary Documentation

Accurate record-keeping is fundamental when it comes to cryptocurrencies. For each transaction, you should document

The date of each transaction

Knowing when you bought and sold cryptocurrency is essential for calculating taxes, especially since the duration you hold a crypto asset can affect the tax rate (short-term vs. long-term capital gains).

The value of the cryptocurrency in fiat at the time of the transaction

This information is crucial for determining the fair market value of your crypto when you conduct a transaction. You’ll use this value to calculate gains or losses.

The purpose of the transaction and who the other party was (even if it’s just their wallet address):

This helps establish the nature of each transaction, whether it was a sale, a trade, or another type of exchange. Knowing the other party’s wallet address can also be important for record-keeping and regulatory compliance.

Strategies for Managing Crypto Taxes

Harvesting Losses

Tax-loss harvesting involves selling crypto at a loss to offset gains from other investments, reducing your taxable income. This strategy requires careful planning to ensure it aligns with tax regulations.

Long-Term Holding

Holding cryptocurrency for more than a year before selling or trading can significantly reduce tax rates due to the favorable rates applied to long-term capital gains.

Utilizing Tax-Deferred Accounts

Consider using tax-advantaged accounts such as IRAs to invest in cryptocurrencies. While the regulations around these investments can be complex, they may offer opportunities for tax-free growth or tax deferral.

Key Deadlines for 2025

Tax year: January 1, 2024 – December 31, 2024
Standard deadline: April 15, 2025
Expats: June 15, 2025
Extension deadline: October 15, 2025

Bitunix Tax Reporting Guidance

Bitunix provides advanced trading services, including spot, margin, and futures trading. However, as an international platform, it may not issue IRS Form 1099s. This means U.S. traders are responsible for tracking and reporting all activity manually or through tax software.

Integrations and Tools for 2025

Tax Report Portal: Bitunix launched a dedicated portal allowing secure connection to tax platforms such as CoinTracking and KoinX.
CoinTracking Integration: Users can connect their Bitunix account by API or manual import to calculate gains and generate reports.
KoinX Integration: Provides automated syncing of Bitunix trades, including futures and derivatives, with referral discounts for Bitunix users.
Downloadable Transaction Logs: Available in the Bitunix dashboard for manual record-keeping.

Compliance Checklist for Bitunix Users

Record every trade, including entry and exit prices, trading pairs, and dates.
Download and store transaction history regularly.
Connect Bitunix to CoinTracking or KoinX for automated reporting.
Report all capital gains on Form 8949 and summarize on Schedule D.
Report any crypto business income on Schedule C.

Strategies for Managing Crypto Taxes

Tax-Loss Harvesting: Sell crypto at a loss to offset gains from other investments.
Long-Term Holding: Holding assets for more than one year results in lower long-term capital gains rates.
Use Tax-Deferred Accounts: Some retirement accounts allow exposure to digital assets with tax advantages.
Leverage Crypto Tax Software: Tools integrated with Bitunix simplify reporting and minimize human error.

FAQs

1. What tax form is used for cryptocurrency?

Form 8949 is used to report each crypto sale or trade, summarized on Schedule D.

2. What tax form do I use for Bitcoin or crypto?

You must use Form 8949, Schedule D, and Form 1040. Depending on your income type, you may also need Form 1099 or Schedule C.

3. What is the Bitcoin tax form?

There is no single Bitcoin tax form. Bitcoin transactions are reported the same way as other cryptocurrencies using Form 8949, Schedule D, and Form 1040.

4. What forms do I need for crypto taxes?

Typically Form 8949, Schedule D, Form 1040, and possibly 1099-DA or 1099-MISC.

5. How do I report crypto on taxes?

Record every taxable event, calculate gains or losses, and enter them into Form 8949. Summarize totals on Schedule D and file with Form 1040.

6. How do I report crypto futures trading on taxes?

Futures trading profits and losses must be reported as capital gains or ordinary income depending on classification. Use Form 8949 and Schedule D, and keep detailed Bitunix transaction logs.

7. What is a crypto taxes form?

This refers generally to the forms required to report crypto to the IRS: Form 8949, Schedule D, and Form 1040.

About Bitunix

Bitunix is one of the world’s fastest growing professional derivatives exchanges, trusted by over 3 million users across more than one hundred countries. Ranked among the top exchanges on major data aggregators, Bitunix processes billions in daily volume and offers a comprehensive suite of products including perpetual futures with high leverage, spot markets, and copy trading. Users can trade bitcoin and other major cryptocurrencies on the platform, taking advantage of advanced trading features. Known for its Ultra K line trading experience and responsive support, Bitunix provides a secure, transparent, and rewarding environment for both professional and everyday traders. Bitunix Academy adds structured lessons so you can build skills while you trade.

Disclaimer: Trading digital assets involves risk and may result in the loss of capital. Always do your own research. Terms, conditions, and regional restrictions may apply.

Crypto Taxes 2024: All You Need to Know