Cryptocurrency Tax Checklist

Under current law as of TY2026, the wash-sale rule in IRC Section 1091 applies to stock or securities, including contracts or options to acquire or sell them. Do not assume every digital asset is outside the rule: tokenized securities and digital assets that are stock or securities are covered. Most cryptocurrencies held directly have generally not been treated as stock or securities, but the classification is asset-specific; other anti-loss or timing rules can also apply. Confirm treatment for your specific asset and year.

NJ taxes crypto disposition gains at NJ GIT rates without a preferential long-term rate. Gains and losses generally net only within the applicable disposition-of-property category for the same tax year. If that category has an excess net loss, NJ treats it as zero; it cannot offset another income category or carry to another year.

Answer 'Yes' if you received a digital asset as a reward, award, or payment for property or services, or if you sold, exchanged, or otherwise disposed of a digital asset or financial interest in one. Purchase-only with real currency, hold-only, and a transfer between wallets or accounts you own generally do not by themselves require 'Yes'; apply the current Form 1040 instructions to every transaction.

Brokers commonly leave Box 1g blank when basis is not reported. A reported $0 is different and should be verified because the Form 1099-DA instructions permit zero only when the digital asset's adjusted basis is actually zero. Reconstruct any supported basis from your transaction history, CSV exports, and other records before reporting the disposition.