Is Transferring Crypto Between Wallets or Exchanges Taxable?

No. Transferring crypto between wallets and/or exchanges is not a taxable event. We like to use the metaphor that it’s like transferring a bunch of gold coins from your nightstand to the bank — the assets remain in your possession as usual, unchanged, just put in a different location. 

Remember that if you send crypto to someone else, as a gift, payment, or sale, then certain tax considerations apply.

The IRS clarified in their recent FAQ that transfers are not taxable, even if you receive an information return from an exchange (such as a 1099-K) reporting the transfers.

Calculate your crypto taxes now

TokenTax does the work so you don’t have to.

Exit hijack mode

Show admin panel