· Kyle Milner, CPA · Tax Planning · 2 min read
2025 Year-End Tax Strategies for Crypto Investors
Crypto profits are up-and so are potential taxes. Here are four moves to trim your 2025 bill before December 31.
2025 has been an excellent year for cryptocurrency investors, with Bitcoin touching all-time highs. Big gains can bring big taxes, so here are year-end ideas to trim the bill.
Harvest losses where you can
Bitcoin may be up, but many alt-coins are still underwater. If you hold crypto losers, consider selling before year-end. Losses offset capital gains dollar-for-dollar, whether those gains came from other crypto or stock sales. If your net losses exceed your gains, you can deduct up to $3,000 against ordinary income and carry forward the rest.
Donate appreciated crypto to charity
If you’re charitably inclined, gifting appreciated crypto that you’ve held more than a year can deliver a double benefit:
- Avoid long-term capital gains tax on the appreciation.
- Claim a Schedule A charitable deduction for the full fair market value, provided you itemize.
Use a donor-advised fund or transfer directly to a charity that can accept crypto.
Use the $19,000 annual gift exclusion
Consider gifting appreciated crypto to children, grandchildren, or other loved ones. In 2025, you may give up to $19,000 per recipient ($38,000 if you split gifts with a spouse) without triggering gift tax or filing Form 709. This can move future appreciation out of your estate and shift gains to recipients in potentially lower tax brackets.
Add crypto to a self-directed IRA or solo 401(k)
If you want long-term exposure with tax-deferred or tax-free growth, establish a self-directed IRA or self-directed solo 401(k) before year-end. You can hold crypto inside either a traditional or Roth account-just be sure to work with a custodian experienced in digital assets and avoid prohibited transactions.
Want help modeling the best combination of harvesting, gifting, and retirement moves for your 2025 crypto gains?
