Are purchases made on TAP Rewards via BAT taxed?

Do I have to report it as a transfer or capital whatever if I used the BAT in my Uphold wallet to purchase a gift card?

Yes, you have to pay taxes on all earnings you get, even if you do not receive them on your bank account in first. Your earnings probably wont be too high, some countries have allowances, for example in germany, you dont need to pay income taxes on <~9.000$/year and i don’t think it will be much different in other countries. I don’t know where you come from, but here in germany we have the Finanzamt, it is i think the same like the IRS in the USA and you can ask them for such easy questions, normally.

(Not a tax advice, just experience)

I live in the US. I understand that BAT counts as income on tax returns when you receive it, but my question is about how or if I’m supposed to report spending it.

You should state that you received X,XX$ in BAT from Brave Browser in your tax report, what you spend it for is not important for anyone else than you.

And you should not forget, if you for example get 1$ in BAT and sell it later for 1,10$, you have 1$ income and 0,10$ capital gains. thats also a taxable event.

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