Currently, on an exchange platform, I am pledging about 10 BCH (approx. $2800) which should earn interest p.a. of 8 % paid out every three months. The interest is paid in BCH, meaning that 8% of 10 BCH (0.8 BCH) will be paid out in four quarters. How should I account for the interest on my tax form?

For earned income, should I just state the value of the tokens that are paid out? If I compound the interest for two years, meaning that I just automatically add the interest tokens to my principal, would I pay any taxes until I access my tokens after two years?

Thank you!

  • The rate, compounding, and how often the interest is paid to you isn't relevant except for determining how much interest is paid to you during the tax year. If you are paid $500, it doesn't matter if you got that in 1, 3, 4, or 12 installments, or that interested credited earlier in the year itself earns interest later in the year. – chepner Aug 30 '20 at 21:14

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.