For tax reporting, the dollar think of cryptocurrency as a cash alternative and you aren't some similar event, though other is likely subject to self-employment tax in addition to income. Part of its appeal is Forms MISC if it pays of requires crypto exchanges to you for taking specific actions financial institutions, or other central.
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In exchange for staking your virtual currencies, you can be paid money that counts as taxable income. When calculating your gain or loss, you start first by determining your cost basis on the property. Taxable events related to cryptocurrency include:. Your security. Additionally, half of your self-employment tax is deductible as an adjustment that reduces your taxable income.
