What are the tax implications of using, holding and selling Guapcoin (or any other crypto)

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The IRS considers virtual currencies like Guapcoin property, and any transfer of ownership of that property can trigger a taxable event (similar to when possession of jewelry, a car, or a home is transferred). Additionally the receiving of cryptocurrency due to mining and minting activities triggers a taxable event because the IRS views this as income. Please see below several links to resources on what this means for cryptocurrencies like Guapcoin.

IRS Notice 2014-21 describing “how existing general tax principles apply to transactions using virtual currency”. Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities? A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income.:https://www.irs.gov/pub/irs-drop/n-14-21.pdf

 

IRS Virtual Currency FAQhttps://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

 

IRS Official Rulings on Q1: Does a taxpayer have gross income as a result of a hard fork of a cryptocurrency the taxpayer owns if the taxpayer does not receive units of a new cryptocurrency? and Q2: Does a taxpayer have gross income as a result of an airdrop of a new cryptocurrency following a hard fork if the taxpayer receives units of new cryptocurrency?: https://www.irs.gov/pub/irs-drop/rr-19-24.pdf

 

Intuit TurboTax  “Tax Tips for Bitcoin and Virtual Currency”https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00q

 

“Bitcoin Tax Guide”: https://www.doughroller.net/taxes/bitcoin-tax-guide/

 

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