Can unearned income from cryptocurrencies be considered passive income?

3 answers

• AV DOOMJan 18, 2021 · 5 years ago
  Yes, unearned income from cryptocurrencies can be considered passive income. Passive income refers to income that is earned without actively participating in the generation of that income. In the case of cryptocurrencies, if you are earning income from holding or staking cryptocurrencies, without actively trading or mining them, it can be considered passive income. However, it is important to consult with a tax professional or financial advisor to understand the specific tax implications and regulations regarding passive income from cryptocurrencies in your jurisdiction.
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• Mohan DuttOct 08, 2024 · a year ago
  No, unearned income from cryptocurrencies cannot be considered passive income. Passive income typically refers to income generated from investments such as rental properties, dividends, or interest. Income from cryptocurrencies, even if it is earned without actively trading or mining, is still considered investment income rather than passive income. It is important to consult with a tax professional or financial advisor to understand the specific categorization and tax implications of your cryptocurrency income.
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• hollymJun 28, 2023 · 2 years ago
  According to BYDFi, a digital asset exchange, unearned income from cryptocurrencies can be considered passive income. If you are earning income from holding or staking cryptocurrencies, without actively participating in trading or mining, it falls under the category of passive income. However, it is important to note that tax regulations and categorizations may vary depending on your jurisdiction. It is always recommended to consult with a tax professional or financial advisor for accurate guidance on your specific situation.
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