Bitcoin crossing the $100,000 threshold represents a historic milestone that transforms early investors into millionaires while creating unprecedented tax obligations that could consume a substantial portion of those gains if not managed strategically. The difference between naive profit-taking and sophisticated tax planning at this price level often amounts to tens of thousands of dollars in unnecessary tax payments.
As Bitcoin holders contemplate realizing life-changing gains, understanding the tax implications and implementing legal optimization strategies becomes absolutely critical for preserving the wealth you have worked and waited years to accumulate. This comprehensive guide reveals the exact strategies that sophisticated Bitcoin investors use to minimize their tax burden while staying fully compliant with IRS requirements heading into 2026.
π° Bitcoin $100K Tax Reality Check
The psychological milestone of Bitcoin reaching $100,000 masks a sobering tax reality that many holders fail to fully appreciate until they calculate their actual obligations. If you purchased Bitcoin at $10,000 and sell at $100,000, you face taxes on $90,000 of gains per coin, not the $100,000 sale price. At combined federal and state rates potentially reaching 40% or higher for short-term gains in high-tax states, that single coin sale could generate a tax bill exceeding $36,000. Multiply this across holdings of multiple coins and the numbers become staggering, potentially consuming years of patient accumulation in a single tax payment.
The distinction between paper gains and realized gains creates both opportunity and trap for Bitcoin holders at the $100K level. While you hold Bitcoin without selling, no tax obligation exists regardless of how much the price increases. The moment you sell, exchange for another cryptocurrency, or use Bitcoin to purchase goods or services, you trigger a taxable event requiring gain recognition. This fundamental principle means that tax planning must occur before profit-taking transactions, not after when options become severely limited and the tax liability is already locked in.
Many Bitcoin holders who accumulated during earlier cycles face the pleasant problem of substantial gains combined with relatively low cost basis from purchases at prices ranging from hundreds to thousands of dollars per coin. These long-term holders face the most significant tax decisions as they consider whether to realize gains at current levels. The appreciation from $1,000 to $100,000 represents $99,000 in taxable gain per coin, a life-changing amount that demands careful planning rather than impulsive decisions driven by price excitement or fear of correction.
π° Tax Impact at $100K Bitcoin
| Purchase Price |
Gain Per Coin |
Tax (20% LTCG) |
Tax (37% STCG) |
| $1,000 |
$99,000 |
$19,800 |
$36,630 |
| $10,000 |
$90,000 |
$18,000 |
$33,300 |
| $30,000 |
$70,000 |
$14,000 |
$25,900 |
| $50,000 |
$50,000 |
$10,000 |
$18,500 |
| $70,000 |
$30,000 |
$6,000 |
$11,100 |
State taxes compound the federal burden significantly for residents of high-tax jurisdictions. California imposes income tax rates up to 13.3% on capital gains, New York reaches 10.9%, and several other states exceed 5% on investment income. A California resident selling $100K Bitcoin purchased at $10,000 faces combined federal and state rates potentially reaching 33% for long-term gains or 50% for short-term gains. This geographic tax arbitrage creates meaningful incentives for some holders to consider relocation before realizing substantial gains, a strategy that requires careful planning and genuine change of domicile.
The new IRS reporting requirements effective January 2026 add another dimension to tax planning for Bitcoin holders. Form 1099-DA will report Bitcoin transactions directly to the IRS with unprecedented detail, eliminating any possibility of unreported gains escaping detection. Understanding this enhanced reporting environment shapes planning decisions, as the consequences of non-compliance or underreporting become substantially more severe when the IRS has direct visibility into your transaction history through exchange-reported data.
My opinion: The $100K milestone represents both celebration and serious responsibility for Bitcoin holders. Taking time now to understand your specific tax exposure and implement optimization strategies before making profit-taking decisions could preserve tens of thousands of dollars that would otherwise go to taxes. Never sell significant Bitcoin holdings without first calculating and planning for the tax consequences.
π Capital Gains Tax Breakdown
Understanding the capital gains tax structure is essential for Bitcoin holders planning profit realization strategies at the $100K price level. The IRS distinguishes between short-term capital gains on assets held one year or less and long-term capital gains on assets held longer. This distinction creates dramatically different tax outcomes, with short-term gains taxed as ordinary income at rates up to 37% federally, while long-term gains benefit from preferential rates of 0%, 15%, or 20% depending on taxable income level. For substantial Bitcoin gains, this difference can amount to nearly half the tax bill.
Long-term capital gains rates create significant planning opportunities for Bitcoin holders at the $100K level. Single filers with taxable income up to approximately $47,000 pay 0% on long-term gains, while those between $47,000 and $518,000 pay 15%, and only income above $518,000 faces the 20% maximum rate. For married couples filing jointly, these thresholds double. Strategic gain recognition that manages total taxable income can keep more gains in lower rate brackets, producing substantial tax savings compared to unplanned concentrated gain recognition.
The Net Investment Income Tax adds an additional 3.8% surtax on investment income including capital gains for higher earners. This tax applies to modified adjusted gross income exceeding $200,000 for single filers or $250,000 for married couples. Combined with the 20% maximum long-term capital gains rate, this creates an effective maximum federal rate of 23.8% for the highest earners, plus applicable state taxes. Understanding these income thresholds enables planning that minimizes exposure to this additional surtax where possible.
π 2026 Capital Gains Tax Rates
| Income Level (Single) |
LTCG Rate |
With NIIT |
| $0 - $47,025 |
0% |
0% |
| $47,026 - $200,000 |
15% |
15% |
| $200,001 - $518,900 |
15% |
18.8% |
| $518,901+ |
20% |
23.8% |
Short-term capital gains receive no preferential treatment and are taxed as ordinary income at your marginal rate. For high earners, this means federal rates up to 37% plus applicable state taxes, potentially approaching 50% combined in high-tax states. The holding period determination uses the day after acquisition as day one and counts exactly one year, meaning Bitcoin purchased on January 15, 2025 becomes long-term on January 16, 2026. Tracking acquisition dates precisely ensures you capture long-term treatment when eligible.
Specific lot identification allows you to choose which Bitcoin to sell when you hold multiple lots acquired at different times and prices. Selecting lots with the longest holding periods ensures long-term treatment when mixed lots exist. Selecting lots with highest cost basis minimizes gain recognition regardless of holding period. This flexibility represents a powerful tool for Bitcoin holders who accumulated over time, allowing optimization that default FIFO accounting would not permit.
My opinion: The capital gains rate structure creates meaningful opportunities for strategic gain recognition that many Bitcoin holders fail to utilize. The difference between 0% and 23.8% rates on the same gain illustrates how powerful this optimization can be. Every Bitcoin holder at $100K should understand exactly which rate brackets apply to their situation before making any sales decisions.
⏰ Strategic Timing for Profit Taking
Timing profit realization strategically can reduce tax burden by thousands or even tens of thousands of dollars compared to impulsive or unplanned selling. The decision of when to sell Bitcoin involves balancing market considerations against tax optimization, and sophisticated investors weigh both factors rather than allowing either to dominate exclusively. Understanding the tax calendar and your personal income situation enables timing decisions that minimize lifetime tax burden while still capturing desired gains.
Spreading gain recognition across multiple tax years represents one of the most powerful timing strategies available to Bitcoin holders with substantial unrealized appreciation. Rather than selling all holdings in a single year where gains stack into higher brackets, distributing sales across 2026, 2027, and beyond keeps more gains in lower brackets each year. A holder with $500,000 in gains might save $30,000 or more in taxes by spreading recognition over three to five years compared to single-year realization at $100K Bitcoin.
Year-end versus new-year timing decisions deserve careful consideration for gains contemplated in December 2025 or January 2026. Selling before December 31, 2025 creates 2025 tax liability due April 2026, while waiting until January 2026 defers the tax bill until April 2027, providing an additional year of investment use for the funds. However, if you expect higher income or tax rates in 2026, accelerating into 2025 might produce better results despite earlier payment. These tradeoffs require individual analysis based on your specific circumstances.
⏰ Profit-Taking Timing Scenarios
| Scenario |
Best Timing |
Rationale |
| Low income year expected |
Concentrate gains that year |
Lower bracket rates |
| High income year expected |
Defer to future years |
Avoid bracket stacking |
| Approaching 1-year holding |
Wait for LTCG treatment |
Rate reduction |
| Large losses available |
Accelerate gains to offset |
Loss utilization |
| Retirement imminent |
Defer until retirement |
Lower income bracket |
Holding period optimization should influence timing when positions approach the one-year threshold for long-term treatment. Bitcoin purchased in January 2025 becomes long-term in January 2026, potentially cutting tax rates nearly in half. Unless you have strong conviction that Bitcoin will decline significantly before reaching long-term status, waiting a few additional weeks or months for the holding period threshold typically provides better risk-adjusted outcomes than selling immediately at short-term rates.
Life events create natural timing opportunities that sophisticated tax planners exploit. Years with lower income due to job transitions, sabbaticals, parental leave, or semi-retirement offer windows for gain recognition at reduced rates. Conversely, years with extraordinary income from bonuses, stock option exercises, or business windfalls represent poor times for voluntary gain recognition. Planning Bitcoin sales around predictable income variations maximizes the portion of gains that benefits from lower bracket treatment.
My opinion: Timing represents one of the most underutilized tax optimization levers available to Bitcoin holders. The flexibility to choose when gains are recognized, unlike employment income which arrives on fixed schedules, creates opportunities that too many investors waste through impulsive or unplanned selling. Develop a multi-year timeline for gain recognition that aligns with your income expectations and bracket management goals.
π Long-Term Holding Strategies
The most tax-efficient strategy for Bitcoin at $100K may be the simplest: continue holding without selling. As long as you maintain ownership without triggering a taxable disposition event, no tax obligation exists regardless of how much appreciation accumulates. This strategy, often called unrealized gain deferral, allows your entire position to compound without annual tax drag that would reduce growth if gains were periodically realized and reinvested after tax. The longer your time horizon, the more powerful this compounding advantage becomes.
The step-up in basis at death represents the ultimate tax optimization available to Bitcoin holders willing to hold for generational timeframes. Under current tax law, assets passing to heirs at death receive a new cost basis equal to fair market value at the date of death, completely eliminating capital gains tax on all appreciation during the original owner lifetime. Bitcoin purchased at $1,000 and held until death at $500,000 would pass to heirs with $500,000 basis, enabling immediate tax-free sale. This provision makes lifetime holding the most tax-efficient approach for wealth intended to transfer to the next generation.
Borrowing against Bitcoin holdings provides liquidity without triggering taxable sales, a strategy increasingly accessible as institutional lending services mature. Rather than selling Bitcoin to fund purchases or investments, you can borrow dollars using Bitcoin as collateral, spend the borrowed funds, and repay the loan over time while your Bitcoin continues appreciating tax-deferred. While this strategy carries risks including margin calls if Bitcoin price declines significantly, it represents a legitimate approach to accessing value without recognizing taxable gains.
π Long-Term Holding Benefits
| Strategy |
Tax Benefit |
Consideration |
| Indefinite hold |
Complete deferral |
No liquidity access |
| Hold until death |
Step-up eliminates gains |
Estate planning required |
| Borrow against holdings |
Access value tax-free |
Margin call risk |
| Charitable donation |
Avoid gains + deduction |
Assets transferred away |
| Relocation to no-tax state |
Eliminate state tax |
Genuine move required |
Charitable giving with appreciated Bitcoin combines tax optimization with philanthropic intent in uniquely powerful ways. Donating Bitcoin held over one year to qualified charities generates a charitable deduction at full fair market value while completely avoiding capital gains tax on the appreciation. A Bitcoin purchased at $10,000 and donated at $100,000 produces $100,000 in charitable deduction while eliminating $90,000 in taxable gains, providing double tax benefit compared to selling and donating cash. For charitably inclined holders, this represents perhaps the most tax-efficient disposition method available.
State tax planning through relocation offers substantial savings for Bitcoin holders in high-tax states willing to genuinely change their residence before recognizing significant gains. States including Florida, Texas, Wyoming, Nevada, and Washington impose no state income tax on capital gains. A California resident moving to Florida before selling $1 million in Bitcoin gains saves approximately $133,000 in state taxes alone. However, this strategy requires genuine change of domicile including physical presence, voter registration, driver license, and other indicia of residency that tax authorities scrutinize carefully.
My opinion: Long-term holding remains the foundation of tax-efficient Bitcoin wealth building. The combination of indefinite deferral, potential step-up at death, and borrowing for liquidity creates a framework where taxes need never be paid on Bitcoin gains during the holder lifetime. While this approach requires discipline and long-term perspective, it produces dramatically better wealth accumulation outcomes than frequent trading and gain recognition.
π Offsetting Gains With Loss Harvesting
While Bitcoin at $100K represents substantial gains for most holders, portfolio management should include strategic loss harvesting from other positions to offset taxable gains when realized. Capital losses offset capital gains dollar-for-dollar with no limitation, and excess losses beyond gains can offset up to $3,000 of ordinary income annually with unlimited carryforward of remaining losses. This creates opportunity to realize Bitcoin profits while minimizing or eliminating actual tax through careful coordination with loss-generating positions elsewhere in your portfolio.
Identifying loss positions requires comprehensive portfolio review across all investment accounts and asset classes. While your Bitcoin holdings may show substantial gains, other cryptocurrencies purchased at higher prices, stocks that have declined, or other investments with unrealized losses provide offsetting opportunities. Tax software and portfolio tracking tools can identify these positions and calculate the optimal combination of gains and losses to minimize net taxable income while achieving desired portfolio adjustments.
Cryptocurrency loss harvesting benefits from the current absence of wash sale rules that limit this strategy for traditional securities. After selling a cryptocurrency at a loss, you can immediately repurchase the identical asset without any waiting period, maintaining your market exposure while capturing the tax benefit of the realized loss. This allows continuous optimization throughout the year as prices fluctuate, harvesting losses whenever positions decline meaningfully below cost basis without sacrificing long-term investment positioning.
π Loss Harvesting Offset Example
| Transaction |
Amount |
Tax Impact |
| Bitcoin sale gain |
+$50,000 |
Taxable gain |
| Altcoin loss harvested |
-$30,000 |
Offset gain |
| Stock loss harvested |
-$15,000 |
Offset gain |
| Net taxable gain |
$5,000 |
Reduced by 90% |
| Tax savings (20% rate) |
$9,000 |
Retained wealth |
Loss carryforward provisions ensure that losses generated in excess of current-year gains retain value for future tax years. If you harvest $100,000 in losses but only have $40,000 in gains to offset, the remaining $60,000 carries forward indefinitely. After applying $3,000 against ordinary income, $57,000 remains available to offset gains in future years. This carryforward allows aggressive current-year loss harvesting even without immediate offsetting gains, banking tax assets for future use when you eventually realize substantial Bitcoin profits.
Coordinating loss harvesting with Bitcoin profit-taking requires planning to ensure both transactions occur in the same tax year. Losses harvested in December only offset gains realized in December or earlier that same year, not January gains which fall into the next tax year. Similarly, gains accelerated in December should be coordinated with same-year loss harvesting for optimal offset. This timing coordination distinguishes strategic tax management from ad hoc transactions that may miss offsetting opportunities.
My opinion: Loss harvesting transforms what most investors view as unfortunate investment outcomes into valuable tax assets. Every portfolio contains positions that could generate harvested losses, and failing to capture these tax benefits represents genuine waste. Make loss harvesting a continuous discipline rather than a year-end afterthought, particularly when planning substantial Bitcoin profit realization.
✅ Complete 2026 Preparation Checklist
Preparing for 2026 taxes on Bitcoin at $100K requires systematic action across multiple dimensions. The following comprehensive checklist ensures you address every critical element before making profit-taking decisions or before the January 2026 regulatory changes take effect. Working through each item methodically positions you for optimal outcomes regardless of which specific strategies you ultimately implement based on your individual circumstances and goals.
Documentation represents the foundation of successful tax management for Bitcoin holders. Gather complete records of all Bitcoin acquisitions including dates, quantities, prices, and any fees paid. These records establish cost basis that determines gain calculations when you eventually sell. For Bitcoin acquired years ago when records may be incomplete, reconstruct history using exchange records, blockchain data, and email confirmations where available. Missing or incomplete basis documentation can result in IRS treating entire sale proceeds as taxable gain.
Calculate your current unrealized gain position by comparing current market value against documented cost basis. This calculation reveals your tax exposure and informs planning decisions. Use specific lot analysis to understand which positions have short-term versus long-term holding periods and which lots have highest versus lowest cost basis. This granular view enables optimal lot selection when you eventually sell rather than accepting default accounting that may produce inferior tax outcomes.
✅ 2026 Bitcoin Tax Preparation Checklist
| Action Item |
Priority |
Deadline |
| Document all acquisition records |
Critical |
Immediately |
| Calculate unrealized gains by lot |
Critical |
December 15 |
| Project 2026 income and brackets |
High |
December 20 |
| Identify loss harvesting opportunities |
High |
December 27 |
| Develop multi-year gain recognition plan |
Medium |
January 15 |
| Consult tax professional |
Medium |
January 31 |
Project your expected 2026 income from all sources to understand which tax brackets will apply to any Bitcoin gains you realize. This projection enables strategic timing of gain recognition to fill lower brackets without pushing into higher rates. Consider employment income, other investment income, business income, and any extraordinary items that might affect 2026 taxable income. Update these projections quarterly as circumstances evolve throughout the year.
Professional consultation provides invaluable perspective for Bitcoin holders facing significant tax decisions at the $100K level. Cryptocurrency-specialized tax advisors understand the unique planning opportunities and regulatory requirements that generalist accountants may miss. The cost of professional consultation typically saves multiples of its expense through optimized strategies and avoided mistakes. Establish this professional relationship before making major decisions rather than seeking advice after transactions are complete and options become limited.
My opinion: Systematic preparation distinguishes investors who preserve their Bitcoin wealth from those who surrender unnecessary portions to taxes through poor planning or ignorance of available strategies. Working through this checklist creates the foundation for informed decision-making that serves your interests rather than defaulting to outcomes that maximize government revenue. Take action now while time remains for meaningful preparation.
❓ Frequently Asked Questions (FAQ)
Q1. How much tax do I owe on Bitcoin at $100K?
A1. Tax depends on your cost basis and holding period. Gain equals sale price minus purchase price. Long-term rates range 0-20%, short-term up to 37%, plus state taxes where applicable.
Q2. When does Bitcoin become long-term for tax purposes?
A2. Bitcoin held more than one year qualifies for long-term capital gains rates. The holding period begins the day after acquisition and must exceed exactly 365 days.
Q3. What is the long-term capital gains rate for Bitcoin?
A3. Federal long-term rates are 0% up to $47K income, 15% up to $518K, and 20% above. Add 3.8% Net Investment Income Tax for incomes over $200K, plus state taxes.
Q4. Can I avoid taxes by not selling Bitcoin?
A4. Yes, unrealized gains are not taxed until you sell, exchange, or use Bitcoin for purchases. Indefinite holding defers taxes completely until a taxable disposition occurs.
Q5. What happens to Bitcoin taxes when I die?
A5. Heirs receive stepped-up basis equal to fair market value at death, eliminating all gains accumulated during your lifetime. This is the most tax-efficient transfer method.
Q6. How do I calculate my Bitcoin cost basis?
A6. Cost basis equals purchase price plus any fees paid to acquire. Use exchange records, receipts, and blockchain data to document acquisition costs for each lot purchased.
Q7. What if I lost my Bitcoin purchase records?
A7. Reconstruct records from exchange history, email confirmations, bank statements, and blockchain forensics. Without documentation, IRS may treat entire proceeds as taxable gain.
Q8. Can I offset Bitcoin gains with losses from other investments?
A8. Yes, capital losses from any source offset capital gains dollar-for-dollar. Excess losses offset up to $3,000 ordinary income annually with unlimited carryforward.
Q9. What is tax-loss harvesting for crypto?
A9. Selling positions at a loss to realize tax-deductible losses, then immediately repurchasing to maintain exposure. Crypto has no wash sale rule preventing this strategy.
Q10. Should I sell Bitcoin all at once or spread sales over years?
A10. Spreading typically saves taxes by keeping more gains in lower brackets each year. Calculate both scenarios based on your specific situation and income trajectory.
Q11. Do I owe state taxes on Bitcoin gains?
A11. Most states tax capital gains as income. Rates vary from 0% in Florida, Texas, and Wyoming to 13.3% in California. State residence at sale determines applicable rate.
Q12. Can I move to a no-tax state before selling Bitcoin?
A12. Yes, but requires genuine change of domicile including physical presence, driver license, voter registration, and other residency indicia. Tax authorities scrutinize this carefully.
Q13. How does donating Bitcoin save taxes?
A13. Donating appreciated Bitcoin to charity avoids capital gains tax while providing charitable deduction at fair market value. Double benefit compared to selling and donating cash.
Q14. What is specific lot identification?
A14. Designating exactly which Bitcoin to sell rather than using default FIFO accounting. Allows selecting highest-basis lots to minimize gains or longest-held lots for LTCG rates.
Q15. Can I borrow against Bitcoin without selling?
A15. Yes, several platforms offer crypto-collateralized loans. You access cash without triggering taxable sale, but face margin call risk if Bitcoin price declines significantly.
Q16. What changes in 2026 for Bitcoin taxes?
A16. New Form 1099-DA reporting begins January 2026, requiring exchanges to report detailed transaction data directly to IRS. This increases compliance importance significantly.
Q17. Should I sell Bitcoin before or after January 2026?
A17. Depends on multiple factors including holding period, income in each year, and available losses. Analyze both scenarios based on your specific circumstances.
Q18. How do I report Bitcoin on my tax return?
A18. Report sales on Form 8949 and Schedule D. Answer the digital asset question on Form 1040 page 1. Include all transactions even if small or net loss.
Q19. What records should I keep for Bitcoin taxes?
A19. Acquisition dates, purchase prices, fees, sale dates, sale prices, exchange records, and wallet transfer documentation. Retain for 7 years after filing related return.
Q20. Is exchanging Bitcoin for Ethereum taxable?
A20. Yes, crypto-to-crypto exchanges are taxable events. You recognize gain or loss on the Bitcoin based on difference between fair market value at exchange and your cost basis.
Q21. Can I use Bitcoin to buy things without paying taxes?
A21. No, using Bitcoin for purchases triggers taxable gain recognition just like selling. The gain equals fair market value of what you receive minus your Bitcoin cost basis.
Q22. What is the Net Investment Income Tax?
A22. Additional 3.8% tax on investment income including capital gains for taxpayers with modified AGI over $200K single or $250K married. Adds to regular capital gains rates.
Q23. Can I put Bitcoin in a retirement account?
A23. Yes, through self-directed IRAs or certain 401(k) plans offering crypto options. Gains grow tax-deferred or tax-free depending on account type.
Q24. What if Bitcoin price drops after I sell?
A24. Your tax is calculated at the sale price regardless of subsequent price movement. This is why timing decisions should consider both tax and market factors.
Q25. How do I minimize short-term gains on Bitcoin?
A25. Wait until holding period exceeds one year for long-term rates, offset with harvested losses, spread recognition across years, or hold indefinitely to defer completely.
Q26. Should I hire a tax professional for Bitcoin?
A26. For substantial holdings or complex situations, professional guidance typically saves more than it costs through optimized strategies and avoided mistakes.
Q27. What is estimated tax and do I need to pay it?
A27. Quarterly payments covering tax on income not subject to withholding. Required if you expect to owe $1,000 or more. Underpayment triggers penalties and interest.
Q28. Can Bitcoin losses offset my salary income?
A28. After offsetting all capital gains, excess losses offset up to $3,000 of ordinary income including salary. Remaining losses carry forward to future years indefinitely.
Q29. What happens if I do not report Bitcoin gains?
A29. IRS receives exchange-reported data and can detect unreported transactions. Penalties include accuracy penalties up to 75% plus interest, and potential criminal prosecution for fraud.
Q30. Where can I get help with Bitcoin tax planning?
A30. Seek cryptocurrency-specialized CPAs or tax attorneys. Use tax software like CoinTracker, Koinly, or TaxBit for calculations. Consult IRS digital asset guidance for rules.
⚠️ Disclaimer
This article provides general information about Bitcoin tax strategies and should not be construed as professional tax or legal advice. Tax laws are complex and individual circumstances vary significantly. Bitcoin prices are volatile and past performance does not guarantee future results. The strategies discussed may not be appropriate for all investors and should be evaluated based on your specific situation. Consult with a qualified tax professional before implementing any tax planning strategies or making significant investment decisions. The author and publisher assume no liability for actions taken based on this content.
π Summary
Bitcoin at $100K creates significant tax obligations that require strategic planning to minimize. Key strategies include holding for long-term capital gains rates that can cut tax rates nearly in half, spreading gain recognition across multiple years to stay in lower brackets, harvesting losses to offset gains, and donating appreciated Bitcoin for double tax benefits. Long-term holders can defer taxes indefinitely through continued holding, access value through borrowing rather than selling, and ultimately transfer to heirs with stepped-up basis that eliminates lifetime gains. New IRS reporting requirements in 2026 increase compliance importance. Document cost basis thoroughly, project income to optimize timing, and consider professional consultation for substantial holdings.
π Editorial and Verification Information
Author: Smart Insight Research Team
Reviewer: Davit Cho
Editorial Supervisor: LegalMoneyTalk Editorial Board
Verification: Official IRS documents and verified tax guidance sources
Publication Date: December 7, 2025 |
Last Updated: December 7, 2025
Ads and Sponsorship: None
Contact: mr.clickholic@gmail.com
