Was wondering if I could get some opinions on tax implications of each classification for US. I wont take any of this as official “Tax Advice”. But I want a better understanding of what taxes the software implements for each classification so I can better record my transactions. For example: I use the Fold card which gives me sats-back for all my purchases. The Fold team’s unofficial advice is to treat it like a rebate which isn’t taxed upon receiving since that is how standard credit card cashback is treated. Not sure which classification to use for this.
Also wondering about rewards I receive from Play-to-Earn games and Faucets like the Polygon faucet. Currently have them both classified as “Bounty”.
AND if “swap” is the correct classification for buying an NFT or if that should be classified as “Purchase”.
Lastly it would be nice to know in general which classifications are taxed upon receiving and not just creating a cost basis for when selling/trading. It would be super beneficial to have an article clarifying what the software does tax-wise for each classification in every supported country.
Thanks! Would like to add that I love this software far more than all the others! Keep up the good work!
P2E and faucets would likely fall somewhere within Bounty territory. NFTs I would just treat the same as a normal collectible, hence a purchase. There’s likely special cases where NFTs fall under different classifications (e.g. swap, bounty) but general acquisition from a marketplace with token asset is almost certainly a “purchase”
Not too sure about the rebate on fold part however.
Play-to-earn games’ rewards are classified as bounties.
For NFTs the swap classification should probably be the preferred option since an NFT is still a crypto asset, but we will bring more clarity on NFTs in the following months.
wating on a response to this. Re NFTs. Purchase of crypto asset has a basis of X. asset lost value. it is now X-Y value at time when it was traded for an NFT. Why when i classify as purchase i see the basis and sold value but doesn’t reflect a decrease change in shortterm gains today? (in my example crypto vlaue was a $400 loss short term but dont see that change in total on taxes page. thanks