A taxable event is any action or transaction that may result in taxes owed to the government. Common examples of federal taxable events include receiving a payment of interest and dividends, selling stock shares for a profit, and exercising stock options. Receipt of a paycheck is a taxable event.

What is a taxable event in a brokerage account?

Any income you earn in a taxable brokerage account is taxed when the income is realized. If you sell a stock at a gain, that gain is taxable. If you earn interest on your cash balance, that interest income is taxable in the tax year in which it was received.

What is a taxable event in Cryptocurrency?

The Internal Revenue Service (IRS) has stated that Bitcoin and other virtual currencies are to be taxed as property, just like how stocks and other capital assets are treated. This means that exchanging, spending or selling Bitcoin is a taxable event where you recognize any capital gain or loss on the asset.