Do I need to pay taxes on my cryptocurrencies?

Yes, but you do not need to pay taxes on all the crypto you own. Taxable income is taxed at either the capital gains tax rate or the ordinary income tax rate.

1. Taxable as capital gains:

    • Selling crypto
    • Exchanging for another crypto
    • Using crypto to pay for goods or services
    • Investing in an ICO

2. Taxable as ordinary income:

    • Mining rewards
    • Staking rewards
    • Crypto received from a hard fork
    • Crypto received from an airdrop

3. Nontaxable events:

    • Buying and holding crypto
    • Transferring crypto between your own wallets or exchange accounts
    • Donations and gifts
    • Soft forks

Capital gains are categorized into either short-term or long-term gains. Short-term gains, sold after a holding period of 1 year or less, are taxed at 10-37% and long-term gains, sold after a holding period of longer than 1 year, are taxed at 0-20%.

With Cointelli, you won’t spend extra time analyzing and tracking your taxable and nontaxable income!



DISCLAIMER: This post is for informational purposes only and should not be interpreted or relied upon as a substitute for the advice of financial, legal, or tax professionals. This content also only addresses U.S. federal income tax consequences for U.S. citizens and residents and does not address tax consequences that may be relevant to a particular person subject to special rules, such as dealers or traders. You should consult with your own financial, legal, or tax professionals to report and file your crypto taxes or make decisions on your particular circumstances. The laws, regulations, or interpretation of the existing laws could change, which may adversely affect either prospectively or retroactively. The content of this post is subject to changes.