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paradigmcomplex
New Member

Blockfi taxes included GUSD withdrawals is this right?

Each withdrawal of GUSD was included as capital gains/losses, is this right?
2 Replies
Critter-3
Level 15

Blockfi taxes included GUSD withdrawals is this right?

SundayInSalem
Level 8

Blockfi taxes included GUSD withdrawals is this right?

It depends on your withdrawals. Blockfi is also a crypto lender. 

 

The IRS treats sales or exchanges of cryptocurrency as a capital transaction.

 

Taking a loan would not be a taxable exchange, just like money received for a car loan is not taxable because you have pay it back with interest.

 

Rewards are generally not capital transactions because you have to do something to earn a reward. Most likely it will be hobby income because earning rewards is not a business for you.

 

And as tax guru @Critter-3 so expertly pointed out, interest is taxable as interest income, and is not a capital transaction.

 

For more info see TurboTax's Your Crypto Tax Guide.

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