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Recap HomeIRS Virtual CurrenciesUK Tax GuideSA Tax Guide
  • Cryptocurrency Tax Guide for US Individuals
    • Virtual Currency & Cryptocurrency
    • Who are Recap?
  • CRYPTOCURRENCY TAX
    • Do I Need to Pay Tax on my Crypto?
    • Which Taxes Apply?
      • Capital Gains Tax (CGT)
      • Income Tax
      • Non-Taxable Transactions
    • How Much Tax Will I Pay?
    • Capital Gains Tax
      • Calculating the Capital Gains and Losses
      • Cost Basis Methods
      • Disposal proceeds
        • Non Taxable Events
        • Taxable Events
        • Donating cryptocurrency to a charitable organization
        • Gifting cryptocurrency to another person
    • Income Tax
      • Receiving cryptocurrency from mining
      • Receiving cryptocurrency rewards
      • Forks
      • Airdrops
      • Tax on Tokenswaps and Mainnetswaps
    • Deductibles and Reducing Capital Gains
  • TRANSACTION TYPES
    • ๐Ÿ’ทSelling Crypto for Fiat
    • ๐Ÿ›๏ธPurchases using Crypto
    • ๐Ÿ”„Exchanging one crypto for a different crypto
    • ๐ŸŽ—๏ธDonations to Qualified Charities
    • ๐ŸŽGifts
    • ๐ŸŽˆAirdrops
    • ๐ŸคStaking
    • ๐Ÿ’ธTransfers
    • ๐ŸดForks
    • โ›๏ธMining
    • ๐Ÿ‘›Employment income
    • ๐ŸšจLost & Stolen Crypto
    • ๐Ÿ’งLiquidity Pools
    • ๐Ÿ”ฎCryptoasset derivatives (CFDs, Futures and Margin Trading)
    • ๐Ÿ’ผCrypto Loans
    • ๐Ÿ’ŽLending Rewards
    • ๐ŸชžReflections Rewards
    • ๐Ÿ‘ฅReferral Income
    • ๐Ÿ’ณCashback
    • ๐ŸŽจNFTs (Non Fungible Tokens)
    • ๐ŸŽฎPlay-to-earn gaming NFTs
  • Record Keeping
  • Reporting Income and Gains to the IRS and Paying the Tax
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  1. CRYPTOCURRENCY TAX

Which Taxes Apply?

PreviousDo I Need to Pay Tax on my Crypto?NextCapital Gains Tax (CGT)

Last updated 3 years ago

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Cryptocurrency is an example of โ€œconvertible virtual currencyโ€ as it can be digitally traded between users and purchased or exchanged into US Dollars and other real/. The sale, exchange, or use of any convertible virtual currency to pay for goods or services in a real-world transaction has .

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

Disposal/Activity Type
Capital Gains Tax
Ordinary Income Tax

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virtual currencies
tax consequences
Spouse Transfers
๐Ÿ’
๐Ÿ’ท
Selling Crypto for Fiatโ€‹โ€‹
Exchanging one Crypto for a different Crypto
๐Ÿ›๏ธ
Purchases using Crypto
๐ŸŽ—๏ธ
Donations to Qualified Charities
Airdrops
Staking
๐Ÿ’ธ
Transfers
๐Ÿด
Forks
โ›๏ธ
Mining
๐Ÿ‘›
Employment income
๐Ÿšจ
Lost & Stolen Crypto
๐Ÿ”ฎ
Cryptoasset derivatives (CFDs, Futures and Margin Trading)
๐Ÿ’ผ
Crypto Loans
๐Ÿ’Ž
Lending Rewards
๐Ÿชž
Reflections Rewards
๐Ÿ‘ฅ
Referral Income
๐Ÿ’ณ
Cashback
๐ŸŽจ
NFTs (Non Fungible Tokens)
๐ŸŽฎ
NFTs earned playing games
๐ŸŽ
Gifts
๐Ÿ’ง
๐Ÿ’ฆ
Liquidity Pool Rewards
Liquidity Pool Movements