Tax season is coming. Here's what crypto traders need to know for 2026.

The Basics

1. Every trade is a taxable event - Swapping BTC for ETH counts as selling
2. Farming/staking income is taxable - At fair market value when received
3. Airdrops are taxable income - Even if you didn't ask for them
4. NFT sales are taxable - Same as any other asset

What to Track

• Buy price and date
• Sell price and date
• Fees paid (deductible)
• Staking/farming rewards received
• Airdrops received

Tools That Help

• Koinly, CoinTracker, Cointracking: auto-sync from exchanges and wallets
• Portfolio trackers with tax reports
• Export CSV from every exchange you use

Common Mistakes

• Not reporting testnet/airdrop income
• Ignoring small trades (they add up)
• Not tracking cost basis across wallets
• Forgetting about foreign exchange accounts

Do your taxes properly. The IRS and other agencies are getting much better at tracking onchain activity.

Posted via Steemit