Income Tax
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). This section discusses various ways you may receive cryptocurrency and how it can be included into your income.
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.