Cryptocurrencies are digital currencies that one can convert to fiat currency anytime. Hence, any cryptocurrency in the form of mining rewards is taxable as you can exchange them as fiat currencies.
Besides mining rewards, any income or profits you make from cryptocurrency are also taxable. However, crypto taxes work differently than regular fiat currencies. Hence, if you are into crypto mining or holding cryptocurrencies, you should be aware of its tax implications. This blog could be a good start.
Cryptocurrency Taxes – A Quick Overview
Cryptocurrency is taxable, just like fiat currencies. However, it has its norms. Let’s look at the prominent cryptocurrency taxes.
When you sell cryptocurrency and make profits, you should pay capital gains you realized on selling it.
When you get paid in cryptocurrency for the goods or services you offer, you owe tax for that amount as you do with any business income.
If you’re into crypto mining, you must pay tax for the mining rewards you earn.
Again, when you pay in cryptocurrency to buy something, you owe tax on the increased value of the crypto compared to what you purchased.
Read the full blog here - https://www.cryptominerbros.com/blog/crypto-mining-tax-implications/
Write a comment ...