How to use it
- Use the formula below with your own figures.
The formula
Income = tokens received × value when received.
Worked example
Rewards are frequently valued at the price when you receive them.
Frequently asked questions
Income or gains?
Rewards are often income; later sales can add gains.
Which country?
Treatment varies — confirm locally.
Tips
- Keep records of every buy, sell and swap.
- Value rewards at the price when received.
- Rules differ by country and change — confirm locally.
Key terms
- Cost basis
- What you paid, including fees.
- Capital gain
- Proceeds minus cost basis.
- Staking
- Earning rewards for securing a network.