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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. The sale, exchange, or use of any convertible virtual currency to pay for goods or services in a real-world transaction has tax consequences.
In the US, most cryptocurrency taxes fall into two categories: capital gains and ordinary income.
Disposal/Activity Type
Capital Gains Tax
Ordinary Income Tax
✅​​
❌
✅​​
❌
​
🛍
Purchases using Crypto​
✅​​
❌
❌ (If conditions met)
❌
​🎈 Airdrops​​
❌
✅
🤝 Staking​​​
❌
✅
​
💸
Transfers​​
❌​​
❌
​
🍴
Forks​​​
❌
✅
​
⛏
Mining​​​
❌
✅
​
👛
​​​​​​ Employment income​
​​❌
✅
​
🚨
Lost & Stolen Crypto​
❌ (Potential to claim capital losses)
❌
​
💧
​​​​​​​​Liquidity Pool Rewards​​
​❌
✅
​
💦
Liquidity Pool Movements​​
✅​​
❌
✅​​​​​​
✅
​
💼
Crypto Loans​​
❌
​​❌
​
💎
​​ Lending Rewards​​​
❌
✅
​
🪞
Reflections Rewards​​
❌
✅
​
👥
Referral Income​​​
❌
✅
​
💳
Cashback​
❌
❌
​​​​​​
🎨
NFTs (Non Fungible Tokens)​
✅
✅ (for creators)
​
🎮
NFTs earned playing games​​
❌​​
✅
​
💍
Spouse Transfers​
❌ (if conditions met)
❌
​
🎁
Gifts​​
❌ (if conditions met)
❌
​