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Level 2
posted Mar 5, 2022 9:22:49 AM

Is Free Bitcoin Taxable?

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

0 2 452
2 Replies
Expert Alumni
Mar 5, 2022 9:37:21 AM

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.

Level 15
Mar 5, 2022 10:48:25 AM

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.