Capital Gains, Crypto, and Rental Property — What You MUST Report on Your 2026 Tax Return
Investment income is one of the biggest areas where taxpayers make mistakes — especially with crypto, stock sales, real estate transactions, and rental income.
The IRS now tracks these more aggressively than ever, including expanded reporting rules, broker 1099 forms, and digital asset disclosures.
- 1) Capital Gains — Short-Term vs Long-Term
- 2) Capital Losses — $3,000 Rule & Carryovers
- 3) Crypto Tax Rules (2026)
- 4) Rental Property — Income & Deductible Expenses
- 5) Depreciation — The Most Powerful Property Deduction
- 6) 1099 Forms & IRS Matching
- 7) Best Strategy for Investors & Landlords
- 8) Top 3 Google FAQs
1) Capital Gains — Short-Term vs Long-Term
Capital gains taxes apply when you sell investments such as:
- Stocks
- Crypto
- Rental property
- Mutual funds
- ETFs
✔ Short-term capital gains
Held less than 1 year and taxed at ordinary income tax rates.
✔ Long-term capital gains
Held more than 1 year and taxed at favorable capital gains rates.
Bought at $5,000 → sold at $9,000
Gain = $4,000
Taxed at long-term capital gains rate (lower than income tax).
2) Capital Losses — $3,000 Rule & Carryovers
If you lose money on investments, you can use those losses to reduce taxes.
✔ What you can deduct
Up to $3,000 per year can offset ordinary income.
✔ Carryover
Any remaining losses carry forward indefinitely until used.
Year 1: $3,000 deducted
Remaining $11,000 rolls over to future years.
3) Crypto Tax Rules (2026)
Crypto is taxed exactly like stocks — but the IRS requires more reporting.
✔ Taxable crypto events
- Selling crypto for USD
- Trading one coin for another
- Using crypto to buy goods/services
- Receiving staking/airdrop rewards
✔ What is NOT taxable
- Buying and holding crypto
- Transferring between your own wallets
Swapping ETH → SOL is a taxable event.
You must report gain or loss even if no USD was involved.
4) Rental Property — Income & Deductible Expenses
Rental property is considered a business — even for a single condo or basement rental.
✔ Must report all rental income:
- Monthly rent
- Cleaning fees
- Pet fees
- Parking fees
- Airbnb income
✔ Deductible rental expenses include:
- Mortgage interest
- Property taxes
- Repairs & maintenance
- Insurance
- HOA fees
- Utilities (if you pay them)
- Professional services
Rental income: $24,000
Expenses: $15,000
Net income = $9,000 (before depreciation)
5) Depreciation — The Most Powerful Property Deduction
Depreciation allows you to deduct the cost of the building over 27.5 years.
✔ Why depreciation matters
It lowers taxable income even when you had no out-of-pocket expense.
Property value (building only): $275,000
Annual depreciation: $10,000
This reduces rental taxable income by $10,000 every year.
Note: Depreciation must be recaptured when you sell the property.
6) 1099 Forms & IRS Matching
The IRS uses automated matching systems to compare your tax return with forms such as:
- 1099-B (brokers)
- 1099-DIV
- 1099-INT
- 1099-K (third-party payment processors)
- 1099-MISC/NEC
Any mismatch can delay your refund or trigger an IRS notice.
7) Best Strategy for Investors & Landlords
✔ 1) Hold investments for more than 1 year
Long-term capital gains are significantly cheaper than short-term.
✔ 2) Use tax-loss harvesting
Selling losing investments reduces taxes on winners.
✔ 3) Track crypto every time you trade
Crypto exchanges do NOT always track cost basis correctly.
Keep your own records.
✔ 4) Maximize rental deductions
Repairs, insurance, mortgage interest, HOA fees — they add up quickly.
✔ 5) Never forget depreciation
Skipping depreciation can cause problems later when you sell the property.
8) Top 3 Google FAQs (2026)
No — transfers between your own wallets are not taxable.
Yes — you must report all sales, even losses.
Losses can reduce your tax bill.
Most Airbnb income is rental income —
unless you provide hotel-like services (daily cleaning, meals, etc.).
핑백: 2025 Fringe Benefits Final Compliance Guide