Taxes

The IRS taxes cryptocurrency much like property or other investments such as stocks or mutual funds. You may owe taxes when you sell or transfer your crypto for a profit or when you receive crypto. Check with your tax advisor to determine how crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.

The IRS taxes cryptocurrency similarly to other investments. Changes in value from when you received or purchased your crypto to when you send or sell your crypto are recorded as gains or losses in your Gain/Loss Summary. Capital gains are taxed at the applicable rate depending on several factors, including your holding period. Check with your tax advisor to determine how your crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.

Fidelity Digital Assets^℠ will not provide tax forms related to any activity in your Fidelity Crypto^® account until crypto tax-reporting requirements are legally defined and in effect. You can view your account activity on Fidelity.com and on the Fidelity Investments^® app. You're responsible for reporting taxable events within your Fidelity Crypto^® account. If you had any crypto sales during the tax year, you’ll receive a Gain/Loss Summary in February of the following calendar year.

Fidelity Digital Assets^℠ does not provide a copy of your Fidelity Crypto^® Gain/Loss Summary to the IRS. The summary is for your own recordkeeping and tax-preparation purposes.

You can upload Fidelity Crypto^® account Gain/Loss Summary CSV files to TurboTax^®. Access your Gain/Loss Summary in your Statements on Fidelity.com. If you have questions about uploading your CSV file, contact TurboTax^® for assistance.

Your crypto trades must execute by 11:59 p.m. ET on December 31 to be recorded for the current tax year.

Cost basis records the amount you paid for each purchase of cryptocurrency. The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that you sell your crypto in the order in which you purchased your crypto.

The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that your executed sell orders are paired to tax lots in the order in which you purchased your crypto. Check with a tax expert to determine how crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.

When you sell an investment that has lost money in a taxable account, you can generally claim a tax benefit. The wash sale rule prohibits investors from claiming the tax benefit when selling at a loss and buying the same (or substantially identical) investment within 30 days before and after the sale date. The rule applies to most of the investments you could hold in a typical brokerage account, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options.

Digital assets like crypto are not subject to wash sale rules. Tax regulation can change, and you should always consult with a tax professional to understand any possible tax implications. Fidelity does not provide legal or tax advice.

You may be able to take a deduction based on the fair market value of your crypto at the time of donations. Check with your tax advisor to determine how your crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.