Prepare Your Wallets: New Crypto Tax Rules Are Coming in 2025

Get ready, crypto investors! The new year is bringing some big changes to how you report your crypto profits. Starting January 1, brokers and exchanges will start using a new form called the 1099-DA to report your gains. This means you'll need to keep a close eye on your cost basis – the amount you first paid for your crypto. If you don't have good records, you might have to pay more in taxes when you sell. Bitcoin, for example, has skyrocketed in value, so early investors could face high taxes if they sell. The new rules also mean you can't just treat all your crypto as if it's in one big account. You'll need to figure out the cost basis for each wallet separately.Accountants can help you sort through your trades and plan for the new rules. There are two ways to handle your cost basis: globally, which is simpler, or specifically for each wallet. If you act fast, you can combine your crypto into one wallet by the end of the year and keep things simple. Don't wait until the last minute. Start talking to your tax pro now to get ready for the new reporting rules. Your future self will thank you!