Crypto and taxes
Was reading through a lot of stuff about taxes and crypto. A disposition is subject to tax (sell, trade from one crypto to another, etc). Question on this situation
- let’s say I have $1000 worth in crypto
- $950 was my own money. $50 was a mixed between referral bonuses and free crypto from Shakepay, etc).
- one year later I decided to sell and for easy math let’s say it’s worth $2000. So I made a $1000 profit.
Am I reporting the entire $1000 as a capital gain on investment? Do I include the free / gifted portion of the crypto? This situation excludes the transaction fees that you would include as I’m trying to keep the variables down
If I am liable to being taxed on the free crypto, does that mean if I use Shakepay everyday to get free crypto, upon disposition, it’s all subject to capital gains?
Thanks in advance
- let’s say I have $1000 worth in crypto
- $950 was my own money. $50 was a mixed between referral bonuses and free crypto from Shakepay, etc).
- one year later I decided to sell and for easy math let’s say it’s worth $2000. So I made a $1000 profit.
Am I reporting the entire $1000 as a capital gain on investment? Do I include the free / gifted portion of the crypto? This situation excludes the transaction fees that you would include as I’m trying to keep the variables down
If I am liable to being taxed on the free crypto, does that mean if I use Shakepay everyday to get free crypto, upon disposition, it’s all subject to capital gains?
Thanks in advance