# Referral Income ![](/files/kx83GCNAlOfticR3862Z) ## Tax treatment {% hint style="danger" %} There has been no official guidance on Referral Income from the IRS and as such we recommend that you speak with your tax attorney or accountant about the best way to file your return. {% endhint %} ### Income Tax Although there is no guidance from the IRS, we assume that referral income should most likely be taxed as income as it typically would not amount to financial trading activity. Where the referral income does not amount to a trade, the USD value (at the time of receipt) of any tokens received from referrals will be taxable as ordinary income. ### Capital Gains Tax The USD value of the referral income at the date of receipt is the capital gains tax acquisition cost of the tokens; to be deducted from the proceeds of a later disposal of the tokens subject to capital gains tax. ## Referral Income in [Recap](https://recap.io/) ![An example of referral income in Recap](/files/c0pKP3hkEUVb2oJ5is95) ## --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/referral-income.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.