Spot Bitcoin ETF Taxation: 1099-B Reporting and Wash Sale Rules for 2026

This episode examines the tax complexities of spot Bitcoin ETFs as we enter the 2026 tax season, highlighting the differences between grantor trust structures and direct asset ownership. We focus on the application of wash sale rules to digital asset securities and the importance of proactive cost-basis management for high-net-worth investors. - How are spot Bitcoin ETFs classified for federal income tax purposes? - Do wash sale rules apply to Bitcoin ETFs differently than direct Bitcoin holdings? - What reporting forms should investors expect from their brokerages in 2026? - How does the holding period affect the tax rate on Bitcoin ETF gains? - Does the Net Investment Income Tax apply to these investment vehicles? - Why is the grantor trust structure significant for tax liability? - How does holding an ETF simplify or complicate cross-border tax reporting? Digital Asset Planning is hosted by Ran Chen, EA, CFP®. He is a seasoned financial professional specializing in complex cases for high-net-worth individuals and families with international backgrounds. Unlike standard crypto commentary, this podcast focuses on the intersection of digital assets and real-world financial planning—including tax strategy, estate and legacy planning, cross-border jurisdictional issues, and risk management. We help serious asset holders move beyond speculation toward long-term responsibility and protection. For more resources, visit https://digital-asset-planning.com.