Any Reportable Event if I Haven't Sold?

[bdchatham]

Hi there, the title pretty well encapsulates my question. Is there any taxable event if I do not sell any crypto asset and am only holding it?

[Anonymous]

Hello bdchatham,

Thank you for joining us today. As to your question...it depends. You don't mention how you obtained the crypto. If you just bought it on an exchange, then there is no taxable event until you sell it.

However, if you mine the crypto then you need to claim the value of the crypto on the day you received it as ordinary income. If you then hold onto it there is no taxable event until you sell it, same as above, where your cost basis is the value of when you received.

I hope that helps.

[bdchatham]

Thanks, Jared. This is helpful!