2025 Year-End Tax Strategies for Crypto Investors

2025 has been an excellent year for investors in cryptocurrency, with Bitcoin reaching all-time highs.

With high profits, however, can come high taxes. Fortunately, there are several strategies you can employ before year-end to reduce your 2025 crypto taxes.

If you invested only in Bitcoin, you may not have any crypto losses. But you could have losses if you invested in other forms of crypto.

If so, you should consider selling your losers before the end of the year. You may fully deduct your losses from any capital gains you realize during the year, such as gains from selling other crypto or stocks at a profit.

If your losses exceed your capital gains for the year, you can use your remaining losses to offset up to $3,000 in personal income. You can carry over any unused losses to future years to offset future gains or income.

Donating appreciated crypto to charity is a great tax strategy if you’re charitably inclined. You’ll not only help a charity but also get two terrific tax benefits:

• You avoid long-term capital gains taxes on your appreciated crypto.

• You can get a charitable contribution deduction equal to the appreciated value.

To obtain these two benefits, you must itemize your deductions on Schedule A, and you must have held the crypto for more than a year.

You should also consider giving crypto to a child, a grandchild, or another loved one. For 2025, you may gift up to $19,000 each to an unlimited number of people without triggering any tax or reporting obligation for you or the recipients. If you’re married, you and your spouse may gift $38,000 per recipient.

Another strategy is establishing a self-directed IRA or a self-directed solo 401(k) to purchase crypto. You can use a self-directed regular or Roth IRA or 401(k).