Why 2025 Crypto Taxes Will Be Trickier Than Normal: What You Need to Know

The discussion centers on navigating the complexities of crypto taxes in 2025, focusing on new regulations and strategies for compliance. Laura Walter, founder and CPA of Crypto Tax Girl, explains the implications of the new 1099-DA form, which requires taxpayers to supplement sales proceeds with cost basis information, potentially complicating tax reporting. A key change is the IRS's shift to a wallet-by-wallet accounting method, necessitating a "safe harbor allocation" to designate cost basis across different wallets. Walter advises taxpayers to use crypto tax software, reconcile transaction histories, and separate business, personal, and retirement crypto activities. The conversation also covers tax implications for stablecoins, perps trading, prediction markets, DATs, crypto ETFs, airdrops, ICOs, privacy coins, and DeFi activities, offering strategies for minimizing tax burdens and remaining compliant.