Is Free Bitcoin Taxable?

[TomInVA]

Hi,

I received $50 worth of free Bitcoin for opening an account at a crypto exchange company.  Do I need to report it now (and how do I report this on my tax return), or do I report it only if/when I exchange or trade the Bitcoin someday in the future?

Thanks,

Jason

[ColeenD3]

Yes, receipt of cryptocurrency is not a taxable event. However, when you sell it, it will be. Your basis will be zero, since it cost you nothing.

[Mike9241]

i disagree. this is no different than a payment you receive from opening a bank a/c. many banks are offering $200 - $300 for opening a new a/c and report it as 1099_INT

the only difference is you'll not get a 1099. but you have been compensated for performing a service - opening the crypto a/c. Therefore, the $50 is taxable.