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IRS Finalizes Crypto Tax Reporting Rules for Brokers

New regulations require detailed reporting on digital asset transactions starting in 2025, with phased implementation and penalty relief.

Overview

  • Brokers must report gross proceeds from digital asset sales beginning January 2025.
  • Tax basis reporting for certain digital assets will start in 2026.
  • Real estate transactions involving digital assets will need reporting from 2026.
  • Non-custodial brokers will have separate rules issued later in the year.
  • Temporary relief from penalties is provided for 2025 transactions with good faith filing efforts.