The IRS is reminding taxpayers to report all cryptocurrency and NFT income on their 2025 federal tax returns. Digital assets are classified as property, and any transactions involving them, including Bitcoin, stablecoins, and NFTs, are taxable. Maintaining detailed records of transactions and calculating capital gains or losses is crucial for compliance.
The IRS makes it clear that, for US tax purposes, digital assets are treated as property, not currency. On its website, the agency explained that a digital asset is stored electronically and can be bought, sold, owned, transferred or traded.
It defines a digital asset as any digital representation of value recorded on a cryptographically secured, distributed ledger, such as blockchain, or similar technology, as per IRS. Examples of digital assets include convertible virtual currencies and cryptocurrencies like Bitcoin, as well as stablecoins and NFTs. First, keep detailed records.
If you had digital asset transactions, you should maintain documentation of your purchase, receipt, sale, exchange or any other disposal of those assets, as per a Silive report. It’s also important to know the fair market value of the asset in US dollars at the time of the transaction.
Second, calculate your capital gain or loss. To do that for a digital asset you sold or disposed of, you’ll need to know the type of digital asset, the date and time of the transaction, the number of units involved, and the basis of the asset that was sold or disposed of, as per the Silive report.
What is considered a digital asset? What is a capital gain or loss? It’s the difference between what the asset was worth when you disposed of it and its basis.
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