How do I report crypto I earned from mining?
Assessing the cost basis of mined coins is fairly straightforward. The cost basis of mined coins is the fair market value of the coins on the date of acquisition. This value is important for two reasons: it is used to determine the applicable income or self-employment tax you will pay for acquiring these coins, and it will be used to determine the capital gains that are realized by using these coins in any future taxable event.
Keep in mind, any expenditure or expense accrued in mining coins (i.e., hardware or electricity) does not play a role in calculating the cost basis. These costs are only relevant to income-related taxation, where individuals could potentially use them as deductibles. Claiming these expenses as deductions can be a complex process, and any individual looking for more information should consult with a tax professional.
Mining income can be added to the Income Tab.
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