# Which Taxes Apply?

Cryptocurrency is an example of “convertible virtual currency” as it can be digitally traded between users and purchased or exchanged into US Dollars and other real/[virtual currencies](https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies). The sale, exchange, or use of any convertible virtual currency to pay for goods or services in a real-world transaction has [tax consequences](https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies).

In the US, most cryptocurrency taxes fall into two categories: capital gains and ordinary income.

| Disposal/Activity Type                                                                                                                                                                      | Capital Gains Tax                     | Ordinary Income Tax |
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ------------------- |
| ​:pound: [Selling Crypto for Fiat​​](/us-tax-guide-for-individuals/transaction-types/selling-crypto-for-fiat.md)                                                                            | ✅​​                                   | ❌                   |
| 🔄 [Exchanging one Crypto for a different Crypto](/us-tax-guide-for-individuals/transaction-types/exchanging-one-crypto-for-a-different-crypto.md)                                          | ✅​​                                   | ❌                   |
| :shopping\_bags: [Purchases using Crypto](/us-tax-guide-for-individuals/transaction-types/purchases-using-crypto.md)                                                                        | ✅​​                                   | ❌                   |
| :reminder\_ribbon: [Donations to Qualified Charities](/us-tax-guide-for-individuals/transaction-types/donations-to-qualified-charities.md)                                                  | ❌ (If conditions met)                 | ❌                   |
| ​🎈 [Airdrops](/us-tax-guide-for-individuals/transaction-types/airdrops.md)​​                                                                                                               | ❌                                     | ✅                   |
| 🤝 [Staking](/us-tax-guide-for-individuals/transaction-types/staking.md)​​​                                                                                                                 | ❌                                     | ✅                   |
| :money\_with\_wings: [Transfers](/us-tax-guide-for-individuals/transaction-types/transfers.md)​​                                                                                            | ❌​​                                   | ❌                   |
| :fork\_and\_knife: [Forks](/us-tax-guide-for-individuals/transaction-types/forks.md)​​​                                                                                                     | ❌                                     | ✅                   |
| :pick: [Mining](/us-tax-guide-for-individuals/transaction-types/mining.md)​​​                                                                                                               | ❌                                     | ✅                   |
| :purse:​​​​​​ [Employment income](/us-tax-guide-for-individuals/transaction-types/employment-income.md)                                                                                     | ​​❌                                   | ✅                   |
| :rotating\_light: [Lost & Stolen Crypto](/us-tax-guide-for-individuals/transaction-types/lost-and-stolen-crypto.md)​                                                                        | ❌ (Potential to claim capital losses) | ❌                   |
| :droplet: ​​​​​​​​[Liquidity Pool Rewards](/us-tax-guide-for-individuals/transaction-types/liquidity-pools.md#liquidity-pool-rewards)​​                                                     | ​❌                                    | ✅                   |
| :sweat\_drops: [Liquidity Pool Movements](/us-tax-guide-for-individuals/transaction-types/liquidity-pools.md#liquidity-pool-movements)​​                                                    | ✅​​                                   | ❌                   |
| :crystal\_ball: [Cryptoasset derivatives (CFDs, Futures and Margin Trading)](/us-tax-guide-for-individuals/transaction-types/cryptoasset-derivatives-cfds-futures-and-margin-trading.md)​​​ | ✅​​​​​​                               | ✅                   |
| :briefcase: [Crypto Loans](/us-tax-guide-for-individuals/transaction-types/crypto-loans.md)​​                                                                                               | ❌                                     | ​​❌                 |
| :gem:​​ [Lending Rewards](/us-tax-guide-for-individuals/transaction-types/lending-rewards.md)​​​                                                                                            | ❌                                     | ✅                   |
| :mirror: [Reflections Rewards](/us-tax-guide-for-individuals/transaction-types/reflections-rewards.md)​​                                                                                    | ❌                                     | ✅                   |
| :busts\_in\_silhouette: [Referral Income](/us-tax-guide-for-individuals/transaction-types/referral-income.md)​​​                                                                            | ❌                                     | ✅                   |
| :credit\_card: [Cashback](/us-tax-guide-for-individuals/transaction-types/cashback.md)                                                                                                      | ❌                                     | ❌                   |
| ​​​​​​:art: [NFTs (Non Fungible Tokens)](/us-tax-guide-for-individuals/transaction-types/nfts-non-fungible-tokens.md)                                                                       | ✅                                     | ✅ (for creators)    |
| :video\_game: [NFTs earned playing games](/us-tax-guide-for-individuals/transaction-types/play-to-earn-gaming-nfts.md)​​                                                                    | ❌​​                                   | ✅                   |
| :ring: [Spouse Transfers](broken://pages/94ZvwOysYgq8GQKWeNE2)                                                                                                                              | ❌ (if conditions met)                 | ❌                   |
| :gift: [Gifts](/us-tax-guide-for-individuals/transaction-types/gifts.md)​​                                                                                                                  | ❌ (if conditions met)                 | ❌                   |


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