RE: Are Hive Rewards Taxable Events?

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I think first question you need to ask here is, are HBD, Hive and HP classified as crytocurrencies.

If the answer is yes, then in the eyes of the IRS these are classified as As Property

Then it would follow that the only time it would be considered for income tax is when you change ownership of said cryptocurrency/HIVE/HBD/HP.

So it is easy then. Since technically each time you earn these tokens/crypto it is on the blockchain so you can get the date and amount, cross reference with the easily available price history found on multiple platforms like Binance, CoinBase and a host of other exchanges.

Since it is the difference between what you acquired them for (the price when you got them) to what you sold them for. The difference either positive (capital gain) or negative (capital loss) will be the one you add onto your tax forms.

However when you convert HBD to Hive or vice versa that is an event and is considered a taxable event (under the title "Taxable vs. Non-Taxable Crypto Events" in the link provided above.)

While there is confusion when the law talks about it being an income tax activity the first rule would be the one that applies that since cryptocurrencies are "property" the taxable event will occur when you exchange to another token or sell for fiat.



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(Edited)

Hmm I have read IRS publication 525 and IRS bulletin 2014-16 Notice 2014-21 and come to the realisation that I agree with the income tax implications for the claiming of HP/HBD and interest components.

Dang US tax laws are harsh.

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It is simple, yet not easy. I don’t know where I could export a CSV of my transactions. Thus, I would have to manually copy and calculate thousands of transactions. This is where I fail. It’s far too big of a job.

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hive.blog has an export feature including the last 2 months.

Personally, I copy/paste from peakd.com into csv, use some formulas, some manual categorisations and some manual re-formatting and auto calculate the various income and cost streams. The advantage of peakd is that you can go back to the first-ever entry. hive.blog doesn't allow you to do so. not sure about leo though.

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