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Get your taxes done using TurboTax
The value of the coin you received would be either self-employment income (if you provided a good or service to earn it) or miscellaneous income. Once you report it as income, that becomes your tax basis in the investment, so when you dispose of it your capital gain or loss would be the sale price less your tax basis. So, there would not be any double taxation.
Your cost basis would then be the value of the coin when you received it.
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‎January 12, 2021
8:36 AM