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How to AVOID Paying Taxes on CRYPTO Profits in the UKCrypto received in a fork becomes taxable when you have the ability to transfer, sell, exchange or otherwise do something with it. In general, you must pay either capital gains tax or income tax on your cryptocurrency transactions on Coinbase. Capital gains tax: Whenever you. It's important to note: you're responsible for reporting all crypto you receive or fiat currency you made as income on your tax forms, even if you earn just $1.