I am here to ask about taxes for Brave affiliates as I cannot find posts about this topic. I know that for U.S. residents, if you earn $600 or more as a self-employed person from a business, the payer of that income is supposed to issue you a Form 1099-MISC.
However, this was never issued to me last year and now I’m a bit confused. Note that I’m a U.S. citizen.
Since Brave Rewards pays in cryptocurrency, does this rule not apply?
Regarding paying taxes on the income, I contacted Uphold and was under the impression that income earned from Brave Rewards only becomes a taxable event after the BAT tokens are sold. Is this true?
If the above is true, this is my understanding for paying taxes on income earned from Brave Rewards. The value in USD of the BAT received in Uphold on the day it is transferred are earnings. Then if the value of the BAT tokens increase and are sold, the increase in value are taxed as capital gains?
Example: Brave Rewards pays 1,000 BAT tokens to an affiliate on 6/8 and the value is let’s say, $0.20 per BAT token on that day. The affiliate decides to sell these 1,000 BAT tokens a month later where a BAT token is now valued at $0.40. The affiliate would file these earnings as $200 income and $200 as short-term capital gains.
Would appreciate some clarification.