Calculating Free Crypto

Many of you are probably familiar with Basic Attention Token, which you earn by using the Brave Browser. Last year I received about $100 worth. Some of it I moved to the Uphold exchange to sell for US dollars. I have two questions:

  1. Are the tokens I received that I haven’t sold yet, taxable?
  2. For the tokens I received that I sold, since I didn’t pay anything for them, I’m assuming that what I received for them is completely taxable?
    It’s such a small amount it’s not a big deal either way but will be good to know going forward. Thank you for any feedback.

Hey @jel11633 ,

This really depends on the tax laws in your jurisdiction.

The BAT rewards may be seen as Income and the worth would be calculated using the FMV on the day of receipt, or if advised could be treated as 0 cost so you are liable for the full capital gains.

Note; you can apply tags like Reward, Airdrop, Income, Interest to any type of deposit. You can then decide whether or not such tags should trigger any special treatment (i.e treating it as income).

So it’s really down to you, and the laws in your area which determine how these should be treated. Koinly can accommodate it either way.


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