Record-Keeping for Taxes
Documents and data to track so you can report Bitcoin activity accurately.
Bitcoin Taxes & Estate Planning
How Bitcoin Is Taxed
General tax treatment of Bitcoin as property and events that can trigger reporting.
Overview
In many jurisdictions Bitcoin is taxed as property, not currency. Selling, swapping, or spending Bitcoin can create capital gains or losses based on the difference between proceeds and your cost basis. Receiving Bitcoin as payment or mining income may be ordinary income at fair market value when received.
This summary is not tax advice. Rules differ by country and change over time. Keep records of dates, amounts, and counterparties, and consult a qualified tax professional for your situation.
Property treatment overview
In many countries Bitcoin is taxed as property. Disposing—selling, swapping, or spending—can trigger gains or losses from proceeds minus basis.
Mining or payment for services may create ordinary income at fair market value when received.
Taxable events to track
Common events include sales for fiat, crypto-to-crypto trades, and spending where local law treats it as disposal. Self-transfers between your wallets often are not taxable but should be documented.
Gifts, donations, and inheritance have separate rules with varying thresholds.
Professional guidance
This material is educational, not personal tax advice. Complex years benefit from preparers who understand digital assets.
Start record-keeping the day you buy—not the week before filing.
