@lulukern123 thank you for another question. When you earn cryptocurrency from mining, it counts as regular taxable income. You owe tax on the entire value of the crypto on the day you receive it, at your marginal income tax rate.
There would be a subsequent taxable event if the cryptocurrency that you paid tax on is then used to purchase a service/good. This could be a short-term capital gain or loss or a long-term capital gain or loss. The basis would be the value on the day you received it.
Be well and safe.
All the best,
Marc T.
TurboTax Live Select Time Tax Expert
26 Plus Years of Experience Helping Clients
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