General rules regarding capital gains
or losses on cryptocurrencies
Cryptocurrency taxation is a complex matter and it is still evolving.
Always work with a qualified CPA/Tax professional to ensure you are reporting cryptocurrency gains and losses correctly.
Payments received in exchange for services or salary is treated as ordinary income. The fair market value of the coins is defined at the time of receipt.
Considered as income. The fair market value of the coins is defined at the time it was successfully mined. Cost of mining may be used to offset the gain.
A taxable event. Generated gains or losses must be reported.
Converting a cryptocurrency to U.S. dollars or another currency (another coin or non-US dollar fiat) is a taxable event. Generated gains or losses must be reported.
In general, this is considered as ordinary income.