#USCryptoStakingTaxReview

Your Staking Rewards Safe from the IRS? 🇺🇸

Content:

Crypto staking has become the go-to strategy for passive income in the Web3 space. But for investors in the United States, the tax landscape can be tricky. If you are staking ETH, SOL, or other PoS assets, ignoring the tax rules could cost you your gains.

Here is a concise #uscrytostakingtaxreview to help you navigate the current situation. 👇

🏛️ The Current Rule: Revenue Ruling 2023-14

For a long time, there was confusion: Are staking rewards "created property" or "income"?

In July 2023, the IRS settled the debate (for now).$BTC

📉 What Does This Mean for You?$SOL

Immediate Taxation: You don’t get taxed when you sell; you get taxed the moment the rewards hit your wallet and you are able to move them.

Fair Market Value (FMV): The tax amount is calculated based on the token price at the exact time of receipt.$ETH

The Volatility Trap: If you receive a staking reward when a coin is at $100, you owe tax on $100. Even if the coin drops to $10 later, you still owe the tax based on the $100 entry.