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Get your taxes done using TurboTax
I was referring to the sale of cryptocurrency (capital gain transactions) in my previous post. For mining transactions (income transactions), both the online version and desktop version work the same. @Basement_Buzzard
For tax purposes, it’s either considered earned income or treated as property sales. The differences are below.
It’s considered earned or ordinary income when you:
- Receive it as payment for goods or services (like if you were paid in cash)
- Mine it and make a profit
- Receive new cryptocurrency from a hard fork followed by an airdrop or other transfer
It’s treated as a property sale, and the earnings are capital gains, when you:
- Sell it (like you would stock)
- Exchange it (swap one type of cryptocurrency for another)
- Spend it (use it as payment for goods and services)
- Convert it to US dollars (sell cryptocurrency to buy regular currency)
Instructions for each are below. The differences between online and desktop are with the capital gains transactions, not the earned income transactions.
- How do I report earnings or losses from Bitcoin and other cryptocurrency?
- How do I report Bitcoin or other cryptocurrency as a capital gain?
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January 24, 2022
8:40 PM