Free crypto tax calculator from Fynvorax. Estimate capital gains tax on crypto sales for short-term and long-term holding periods.
Selling, trading, or spending cryptocurrency can trigger taxable capital gains in the U.S. Your cost basis is generally what you paid to acquire the asset. Gains on assets held one year or less are usually taxed as short-term capital gains at ordinary income rates. Gains on assets held longer than one year may qualify for lower long-term capital gains rates. Use this calculator to estimate tax owed and plan sales or tax-loss harvesting with your tax advisor.
It is the strategic practice of selling coins at a loss before the end of the tax year to offset capital gains from other successful asset sales, thereby dropping your net annual tax bill.