It depends. Cryptocurrency transactions can be tricky because a single transaction may or may not be able to be specifically allocated. Rather, it depends on your treatment of all of your crypto transactions throughout the year. This is because of what is known as the "accounting method" used to determine the coin's basis as well as the capital gain/loss in the coin.
In your case, @dylpickle4, your winnings of $4600 should be reported to you on a Form 1099-MISC (not subject to self-employment tax). I say should, because (especially since you were paid the winnings in crypto), it is always possible that what should have happened didn't or won't necessarily happen. (Crypto transactions and crypto exchanges are notoriously underreported to the IRS, and Congress has been working to crack down on this). Regardless of whether it is reported or not, the USD value of the award on the day you received it is taxable. And that forms the basis you will use for that 1.3 ETH coin when you do "cash it in"? So here's the golden question: is that what you did from a tax standpoint?
The answer to that is maybe. This is where it needs to be determined what other treatment you give to the rest of your crypto transactions. So, for instance, if this 1.3 ETH is the only Etherium you had in your wallet, then what you state is correct. What you will report (and the crypto exchange will or should provide you a .csv file to assist you with importing the information into TurboTax), is a basis of $4600, and a sales price of (let's assume) $4600, which is a $0 gain/loss exchange. Even if the price fluctuated a little bit in the day, it is appropriate to report the new price. Also, if you pay a service charge to cash in the money, this adds to the basis, reducing gain (or increasing loss).
Another scenario: you have other Etherium (and crypto) transactions, but have chosen to use LIFO as your "accounting method". LIFO means "Last In First Out", which means that the coin cashed in will be the last coin you bought/received. This will almost certainly produce the same result as above.
Another scenario: same facts, except you choose to use FIFO ("First In/First Out"). In this case, instead of using the basis on the 1.3 ETH for the date you received the reward, it will trace back to the oldest 1.3 ETH you have in your wallet, and calculate your gain/loss from that point. If that particular coin cashed is more that 1 year old, the transaction will be classified as long term.
One final scenario: you choose an "optimalization" method. With optimalization, each and every transaction is analyzed to determine the best tax treatment for it. Usually, either the most expensive "short-term" basis is used for the transaction (to reduce the gain or increase the loss of this "ordinary tax" transaction, or the most favorable "long-term" basis is used, so that any gain is reported under the much more favorable "long-term capital gains" rate. In this scenario, there's no telling which transaction is used to determine the basis of the 1.3 ETH sale, but it will be what should best benefit your overall tax situation.
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