I've been thinking about some tax accounting I'll be working on soon, to wrap up this year, and prepare for April. Of course, my adventures in cryptocurrency will need to be claimed as well. Here are some basics I've discovered.
First, cryptocurrency is treated like the stock market, and any money you make trading needs to be claimed as capital gains. When you lose, it is a capital loss, and you deduct that.
In my case, because I received these tokens as rewards from Parler, I will have to claim them. Now, if I had purchased them with cash, or were sitting on them, or transferring the tokens from one account to another, there would be no taxes.
The USD cash value of the tokens at the time they were issued as a reward is claimed on taxes as gains. This value is called the "cost basis", the same as the value if you buy them. The cost basis is used for making capital gains and losses claims. If you earn any coins or tokens from staking, or mining them, then you have to include that as cost basis income as well. Gathering that information has been a pain in the ass, and very time consuming to get into a format I want to use for my records.
That seems to be about it. Treat it like gains and losses from playing the stock market. I'm not sure what Mexico's laws are, you know, if you are using their exchange outside the the States.
First, cryptocurrency is treated like the stock market, and any money you make trading needs to be claimed as capital gains. When you lose, it is a capital loss, and you deduct that.
In my case, because I received these tokens as rewards from Parler, I will have to claim them. Now, if I had purchased them with cash, or were sitting on them, or transferring the tokens from one account to another, there would be no taxes.
The USD cash value of the tokens at the time they were issued as a reward is claimed on taxes as gains. This value is called the "cost basis", the same as the value if you buy them. The cost basis is used for making capital gains and losses claims. If you earn any coins or tokens from staking, or mining them, then you have to include that as cost basis income as well. Gathering that information has been a pain in the ass, and very time consuming to get into a format I want to use for my records.
That seems to be about it. Treat it like gains and losses from playing the stock market. I'm not sure what Mexico's laws are, you know, if you are using their exchange outside the the States.
A trail goes two ways and looks different in each direction - There is no such thing as a timid woodland creature - Whatever does not kill you leaves you a survivor - Jesus is NOT a bad word - MSB