topic Re: Virtual Currency basis in Get your taxes done using TurboTax

Virtual Currency basis

cstinson65 — Tue, 24 Feb 2026 06:39:28 GMT

I've converted $10,000 US dollar to 10,000 USDT (stable coin) virtual currency in a service that returns 200 USDT per month but instead of converting it back to USD I roll over that 200 USDT each month back into the service and thus haven't converted anything back to USD or converted to another virtual currency. Am I required to pay taxes on the returns that I roll over?

Re: Virtual Currency basis

Denisev1220 — Wed, 28 Jun 2023 23:28:35 GMT

In general the answer is yes. You could have received it but chose not to.

You still received income.

Re: Virtual Currency basis

LoriC17 — Wed, 28 Jun 2023 23:30:34 GMT

Just to add, If you buy crypto, there's nothing to report until you sell. If you earned crypto through staking, a hard fork, an airdrop or via any method other than buying it, you'll need to report it, even if you haven't sold it.

Re: Virtual Currency basis

rschule1 — Wed, 28 Jun 2023 23:39:09 GMT

Hi There:

Assuming the 200 monthly USDT is increasing your initial $10,000 USDT by 200 USDT monthly then it is taxable at short term ordinary gain rates. For a thought experiment, 200*12 equals a 24% rate of return, which makes me wonder if such a return is sustainable? Btw, I'm an accountant not a financial planner, so re: viability of investment-please consult with a financial planner.