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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
✅​​
✅​​
✅​​
❌ (If conditions met)
​🎈 Airdrops​​
🤝 Staking​​​
💸
Transfers​​
❌​​
🍴
Forks​​​
Mining​​​
👛
​​​​​​ Employment income
​​❌
❌ (Potential to claim capital losses)
💧
​​​​​​​​Liquidity Pool Rewards​​
​❌
✅​​
✅​​​​​​
💼
Crypto Loans​​
​​❌
💎
​​ Lending Rewards​​​
🪞
Reflections Rewards​​
👥
Referral Income​​​
💳
Cashback
​​​​​​
🎨
NFTs (Non Fungible Tokens)
✅ (for creators)
❌​​
💍
Spouse Transfers
❌ (if conditions met)
🎁
Gifts​​
❌ (if conditions met)