Topic
What is cost basis in crypto?
Last reviewed:
- Quick fact 1
Your basis in crypto you bought is generally what you paid in US dollars, including fees and other costs to buy it.
Source: IRS: Frequently asked questions on virtual currency transactions
- Quick fact 2
Your gain or loss is the difference between what you received and your adjusted basis.
Source: IRS: Frequently asked questions on virtual currency transactions
- Quick fact 3
Brokers must report basis on certain digital asset sales from Jan 1, 2026.
Source: IRS: Digital assets
The short lesson
Cost basis is the starting number for crypto tax math in the US. It is generally what you paid for a digital asset in dollars, plus certain fees and costs to buy it.
When you sell, trade or spend crypto, you compare what you got (in dollars) with your basis. If you got more, that is a gain. If you got less, that is a loss.
A simple example: you buy some crypto for $100, including fees. Later you sell it for $150. Your gain is $50. If you sold it for $80, your loss would be $20.
Why records matter:
- Every purchase has its own basis. If you bought at different times, you need dates and amounts for each.
- Form 1099-DA may not show your basis. For 2025 sales it shows gross proceeds only, and for older or moved coins basis is often not reported. You fill it in from your own records.
- Basis is tracked wallet by wallet from 2025, not in one pool across all your accounts.
This is education, not tax advice. Use IRS.gov or a tax professional for your own return. See our Tax terms explainer.
Related terms
Go deeper in Lesson 10: How to keep learning
Common questions
Do fees count in cost basis?
Generally, fees and costs to buy can be included in basis. The IRS FAQ explains the rules.
What if I do not know my basis?
Gather records from exchange statements and bank records. A tax professional can help with gaps.
Does Form 1099-DA show my basis?
For 2025 sales it shows gross proceeds, not basis. From 2026, brokers must report basis only for certain covered assets.
Is this tax advice?
No. It is education. Rules can change, and your situation matters.