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Cryptocurrency transactions are taxed when they generate a capital gain or income, such as selling crypto for fiat, trading one crypto for another, and receiving payments in crypto.

Income from mining is taxed as self-employed income, and miners can deduct expenses. Taxes are due when the mined cryptocurrency is sold or exchanged.

All cryptocurrency transactions must be reported on your tax return. Capital gains or losses are reported on Schedule D and Form 8949, while ordinary income is reported as other income.

Cryptocurrency is taxed at the same rates as other capital assets. Short-term gains are taxed as ordinary income, and long-term gains have lower tax rates depending on the taxpayer's income bracket.

The receipt of a cryptocurrency airdrop is a taxable event and the airdropped crypto is taxed as ordinary income on its fair market value at the time of receipt.

After a hard fork, if you receive new cryptocurrency, it is treated as ordinary income and is taxable at the fair market value of the new cryptocurrency at the time you gain control over it.

Cryptocurrency losses can be used to offset capital gains. If losses exceed gains, you may be able to deduct up to $3,000 against other income, with additional losses carried forward to future years.$

Gifting cryptocurrency is not a taxable event for the giver unless the gift exceeds the annual exclusion limit ($15,000 for 2021), in which case a gift tax return may need to be filed. The recipient is not taxed upon receipt but may encounter capital gains taxes upon sale.$

Donating cryptocurrency to a qualified nonprofit can provide a tax deduction for the full fair market value if held for more than one year, and you will not owe capital gains tax on the appreciated amount.

Holding cryptocurrency in foreign accounts may require reporting to the IRS through the FBAR (FinCEN Form 114) and FATCA (Form 8938), depending on the value of the accounts.

Income earned through DeFi yield farming is generally treated as ordinary income, taxes are owed upon receipt of the new tokens, and lending activities may have interest income tax implications.

Buying and selling Non-Fungible Tokens (NFTs) can result in capital gains or losses, which are taxed accordingly. Creators of NFTs are taxed on income received from the initial sale.

Staking rewards are taxable as ordinary income based on the fair market value at the time they are received, and later sales of these rewards can subsequently trigger a capital gain or loss.

Peer-to-peer crypto transactions are taxable and must be reported. The person paying or selling the crypto may incur a capital gain or loss, while the recipient needs to report the market value as income if used for payment for goods or services.