Please see the TurboTax Help article “How do I report earnings or losses from Bitcoin and other cryptocurrency?” for entry guidance.
I'm also having this issue. I received free XLM from Coinbase Earn. It was not self employment income as I did not provide a service, or sell anything. The TurboTax Cypro Currency transaction calculator seems to be for purchasing and selling crypto for capital gains/loss purposes which doesnt qualify. I believe the XLM should be reported as Miscellaneous income?
Fireman05, you are correct. It sounds like you got an airdrop and yes it is taxable.The tax you owe is calculated based on the “fair market value” of the coin, regardless of whether it can be spent, exchanged, or transferred.
You should post it under:
If I were to receive the crypto from the reward earned by Coinbase and then decided to sell it. Will be double taxed as MISC income and also capital gain? Do I put zero for the cost during the capital gain/loss filing?
The value of the coin you received would be either self-employment income (if you provided a good or service to earn it) or miscellaneous income. Once you report it as income, that becomes your tax basis in the investment, so when you dispose of it your capital gain or loss would be the sale price less your tax basis. So, there would not be any double taxation.
Your cost basis would then be the value of the coin when you received it.
you report the us $ value of the earn when you received it. that also becomes your cost basis.
When you sell it you pay capital gains on the sell price - basis
I have earned EOS & XLM currency received as Coinbase Earn from Coinbase of 19.94 for 2020 and I would like to know how do I report these 2 cryptocurrency? I try to Generate 8949, but it wouldn't generate one because I didn't sell anything. Help please. Thank you!