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 to ensure you are reporting cryptocurrency gains and losses correctly.

Ordinary income

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.

Mining

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.

Spending

A taxable event. Generated gains or losses must be reported.

Converting Coins

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.

ICOs

In general, this is considered as ordinary income.