If you are living in the US, then yes. A majority of other countries has yet to acknowledge bitcoin or other crypto as a currency or a commodity but I expected more regulators of other countries to start imposing taxes on crypto profits in the very near future.
The IRS ( Internal Revenue Service ) has declared that it is compulsory to report all sorts of crypto transactions, regardless of their value.
Therefore , each U.S. taxpayer is mandated to keep a record of any purchase , sale , investment or utilization of Bitcoin to pay for commodities or services. Because Bitcoins are regarded as assets , if you utilize Bitcoins for basic transactions like household goods in a convenience store , you would need to pay a capital gains tax.
Here’s a few scenarios that would lead to taxes.
- Purchasing goods or hiring services using bitcoin that you acquired via mining.
- Purchasing goods or hiring services using bitcoin which you bought from somebody else.
- Selling of bitcoins to a third party which you personally acquired via mining.
- Selling of bitcoins to a thrid party which you bought from somebody else.
Hope that it helps.