KarenKhine

Taxes on Crypto Gains: Outsmart the IRS!

Navigating taxes on crypto gains in 2025 is like mining a volatile blockchain! The IRS taxes crypto as property, hitting gains from sales, swaps, or purchases. Short-term gains (held <1 year) face ordinary income rates (10–37%), while long-term (>1 year) get 0–20%, per Forbes. Example: Buy 1 ETH at $2,000, sell at $3,000, and owe tax on $1,000. Staking rewards or airdrops? Taxed as income at market value. X posts warn of audits for unreported trades (@CryptoTaxGuru). Missouri’s 2025 capital gains tax cut (@PolitlcsUK) won’t dodge federal rules. Losses offset gains up to $3,000 yearly. Track trades with LIFO or FIFO on Form 8949 to ease reporting.

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