Credit Card Cashback Rewards Shouldn't Be Taxed
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Petur
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Koinly now has a 'Cashback' label which is treated as non-taxable
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Teal Marsupial
Koinly treats cc rewards as income with zero cost basis.
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Cyan Tarsier
It should just flag as deposit which is non tax in koinly
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Teal Marsupial
Cyan Tarsier: I think it would need to adjust the cost-basis in order to not be taxed later when sold.
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Cyan Tarsier
Teal Marsupial: you should be taxed on any gain when sold. The rewards are not tax as income.
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Teal Marsupial
Cyan Tarsier: Agreed, but the tax cost-basis should not be zero. Probably it should be the sales price minus the fair market price when awarded...no?
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Cyan Tarsier
Teal Marsupial: the cost basis should be the market value when you earned the reward/deposit. Are you getting a zero basis for the reward / deposit?