Which crypto transactions are taxable events?

Determining what transactions are considered taxable events for cryptocurrency can be complex.

The following are examples of transactions that would be considered taxable events:

  • Selling your cryptocurrency for fiat money such as USD
  • Exchanging your cryptocurrency for another type of cryptocurrency or digital asset 
  • Paying for goods or services with cryptocurrency 
  • Receiving compensation in cryptocurrency 
  • Earning staking rewards in cryptocurrency 
  • Receiving an airdrop in cryptocurrency 

 

What isn’t a Taxable Event? 

It’s also important to understand what isn’t taxable. 

The following are the most common types of scenarios that aren’t taxable events:

  • Purchasing cryptocurrency with fiat 
  • Transferring cryptocurrency from one of your personal wallets to another personal wallets 
  • Making donations of crypto to a registered charitable or non-profit organization
  • Gifting crypto up to $15,000 per donee or recipient 


The IRS issued
Notice 2014-21 to help guide individuals and businesses on the corresponding tax treatment involved when transacting in cryptocurrency. 

Uphold does not offer tax advice and we recommend you discuss your tax situation with a tax advisor.

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