2025 Crypto Taxes: Gains, Losses, Gifts, and Retirement Accounts

Crypto holdings can raise questions about realized gains, unrealized losses, and transfers to charities or family. These are four areas to consider before the end of 2025.

Harvest losses where you can

Bitcoin may be up, but many alt-coins are still underwater. If you hold crypto losers, consider whether selling before year-end can offset capital gains from crypto, stock sales, or other investments.

Donate appreciated crypto to charity

If you are charitably inclined, gifting appreciated crypto held longer than a year can potentially avoid long-term capital gains tax and support a charitable deduction if you itemize.

Use a donor-advised fund or transfer directly to a charity that can accept crypto.

Use the annual gift exclusion

Consider gifting appreciated crypto to children, grandchildren, or other loved ones when it fits your broader plan. Gift-tax rules, recipient tax brackets, and family facts matter, so review the numbers before moving assets.

Consider a self-directed retirement account

If you want long-term exposure with tax-deferred or potentially tax-free growth, a self-directed IRA or solo 401(k) may be worth reviewing. Work with an experienced custodian and watch prohibited transaction rules closely.