The cryptocurrency space is pretty new and not much is out for all facets of the topic. I'm running cryptocurrency nodes which validate transactions, not cryptocurrency miners, and are rewarded with cryptocurrency for providing the validation capacity. How are the gained rewarded cryptocurrency treated? Regular business income or could it be treated as passive income since I'm literally running some fancy coded program on a virtual private server? Literally less than an hour a week in my time to ensure everything is running correct. I have to run all profits and expenses through a business entity, like a one owner LLC I have, to capture expenses to offset profits due to the 2017 tax reform. Wo uld this be considered as active business income or a passive business income? Basically am I going to be using a Schedule C or Schedule E?
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