> For the complete documentation index, see [llms.txt](https://docs.recap.io/us-tax-guide-for-individuals/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.recap.io/us-tax-guide-for-individuals/cryptocurrency-tax/income-tax.md). # Income Tax ![](/files/cBQ823qJyVJgQO29y3V4) As discussed, Capital Gains tax comes from gains realized on the sales of cryptocurrency held and then disposed of via sale or exchange. For cryptocurrency received in other scenarios, these are often included in the IRS’ definition of income. ([26 U.S. Code § 61](https://www.govinfo.gov/content/pkg/USCODE-2020-title26/pdf/USCODE-2020-title26-subtitleA-chap1-subchapB-partI-sec61.pdf)). This section discusses various ways you may receive cryptocurrency and how it can be included into your income. ## The [Recap](https://recap.io/) Income Report The Recap Income pdf report provides details of all cryptoasset income to be included on your annual Tax Return. The intention is that you pass our report to your accountant and they will be able to complete the Tax Return and advise on your tax position, based on your specific circumstances. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.recap.io/us-tax-guide-for-individuals/cryptocurrency-tax/income-tax.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.