TAXABLE EVENTS
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Selling crypto for fiat
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Trading one crypto for another
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Using crypto to pay for goods/services
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Mining rewards (ordinary income)
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Staking rewards (income)
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Airdrops (income at FMV)
NOT TAXABLE (US)
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Buying crypto with fiat
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Transferring between your own wallets
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Gifting (up to annual exclusion)
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Donating to charity
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Receiving a loan using crypto as collateral
COST BASIS METHODS
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FIFO: First bought = first sold (IRS default)
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LIFO: Last bought = first sold
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HIFO: Highest cost = first sold (minimizes gains)
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Spec ID: You choose which lot to sell
TAX-LOSS HARVESTING
If a position is at a loss, consider selling to realize the loss and offset gains. Then re-buy after 30 days. Note: crypto may not have wash-sale rules (varies by jurisdiction).