Crypto as Property: IRS Rules Your Need to Know for 2025

The IRS has confirmed that cryptocurrencies are treated as property, not immediate income. This classification means your crypto holdings will only be taxed when you sell, trade, or gift them. Unlike wages or dividends, the IRS does not tax you upon receipt or holding of crypto. Instead, it triggers taxation upon these actions. This rule is vital for understanding how and when your cryptocurrency activities become taxable. 2025 holds specific rules surrounding gifts. Gifts exceeding $19,000 per individual in 2025 require filing Form 709 with the IRS.