Overview:
I unearthed some cryptocurrency from 2018 that I had mined through an online service, and I even received an email from them. Now, they are asking for KYC verification to process a cash-out of roughly $400—a quantity that was previously worth mere pennies.
My Concern:
How should I appropriately handle the taxation on this find? Since I am uncertain about the exact mining date, is it acceptable to declare this as income for the year 2025, or should I consider a different method?
hey, i’ve been thinkin bout this too and i feel like the whole time recognition thing is kinda hazy. since you mined back in 2018, you might argue that the income technically should be booked for that year even if the value was super low then. but now that its worth a bit more and you’re cashing it out, things get murkier. i wonder if some tax jurisdictions might allow you to declare it as income for the year of cash-out since that’s when you actually reaped any profit – or maybe you can consider it as a cost basis adjustment? have u come across any guidlines or had talk with a pro about how prior crypto gains are treated? seems like a good idea to keep all your records handy and maybe get a second opinion from another expert. curious how others have tackled stuff like this in their own cases.
hey, im no tax expert but rough idea is to book it as income in the year you actually cash out. you def need to check with a tax pro tho, coz crypto rules are messy. keeping records might help if questions pop up later.