Which Taxes Apply?

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/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 TypeCapital Gains TaxOrdinary Income Tax

โœ…โ€‹โ€‹

โŒ

โœ…โ€‹โ€‹

โŒ

๐Ÿ›๏ธ Purchases using Crypto

โœ…โ€‹โ€‹

โŒ

โŒ (If conditions met)

โŒ

โ€‹๐ŸŽˆ Airdropsโ€‹โ€‹

โŒ

โœ…

๐Ÿค Stakingโ€‹โ€‹โ€‹

โŒ

โœ…

๐Ÿ’ธ Transfersโ€‹โ€‹

โŒโ€‹โ€‹

โŒ

๐Ÿด Forksโ€‹โ€‹โ€‹

โŒ

โœ…

โ›๏ธ Miningโ€‹โ€‹โ€‹

โŒ

โœ…

๐Ÿ‘›โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹ Employment income

โ€‹โ€‹โŒ

โœ…

๐Ÿšจ Lost & Stolen Cryptoโ€‹

โŒ (Potential to claim capital losses)

โŒ

๐Ÿ’ง โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹Liquidity Pool Rewardsโ€‹โ€‹

โ€‹โŒ

โœ…

๐Ÿ’ฆ Liquidity Pool Movementsโ€‹โ€‹

โœ…โ€‹โ€‹

โŒ

โœ…โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹

โœ…

๐Ÿ’ผ Crypto Loansโ€‹โ€‹

โŒ

โ€‹โ€‹โŒ

๐Ÿ’Žโ€‹โ€‹ Lending Rewardsโ€‹โ€‹โ€‹

โŒ

โœ…

๐Ÿชž Reflections Rewardsโ€‹โ€‹

โŒ

โœ…

๐Ÿ‘ฅ Referral Incomeโ€‹โ€‹โ€‹

โŒ

โœ…

๐Ÿ’ณ Cashback

โŒ

โŒ

โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹๐ŸŽจ NFTs (Non Fungible Tokens)

โœ…

โœ… (for creators)

๐ŸŽฎ NFTs earned playing gamesโ€‹โ€‹

โŒโ€‹โ€‹

โœ…

๐Ÿ’ Spouse Transfers

โŒ (if conditions met)

โŒ

๐ŸŽ Giftsโ€‹โ€‹

โŒ (if conditions met)

โŒ

Last updated