Is cash back from credit cards taxable income when used for purchasing cryptocurrencies?

3 answers

• Jeffrey HullemanAug 01, 2022 · 3 years ago
  Yes, cash back from credit cards is generally considered taxable income when used for purchasing cryptocurrencies. The tax authorities view cash back as a form of income, regardless of how it is used. Therefore, you should report the cash back as taxable income on your tax return and pay any applicable taxes on it. It's always a good idea to consult with a tax professional for specific advice regarding your situation.
  421

  211
• TARUN GOYALApr 24, 2021 · 4 years ago
  No, cash back from credit cards is not considered taxable income when used for purchasing cryptocurrencies. The tax authorities do not consider cash back as a form of income, as it is seen as a rebate or reward for using the credit card. However, it's important to note that tax laws can vary by jurisdiction, so it's always a good idea to consult with a tax professional to understand the specific rules and regulations in your country or region.
  447

  149
• PopyDec 12, 2021 · 4 years ago
  When it comes to cash back from credit cards used for purchasing cryptocurrencies, the tax treatment can vary depending on the jurisdiction. In some countries, cash back may be considered taxable income, while in others it may not. It's important to consult with a tax professional or refer to the tax laws in your specific jurisdiction to determine how cash back from credit cards used for purchasing cryptocurrencies is treated for tax purposes.
  447

  112