#USCryptoStakingTaxReview

Under current IRS guidance (Revenue Ruling 2023-14), staking rewards are taxable as income when received, even if not sold. This has led to complaints from stakers who pay tax on “phantom income” taxable income without liquidity...

The US crypto staking tax reform is gaining momentum, with lawmakers introducing the Digital Asset PARITY Act to address taxation concerns. The proposed bill offers several key changes:

- 🌟Tax Deferral*: Staking and mining rewards would be taxed as ordinary income, but recognition would be deferred for up to 5 years or until sale.

- 🌟Stablecoin Exemption*: Transactions under $200 using regulated stablecoins would be exempt from capital gains tax.

- 🌟Wash Sale Rules*: Crypto assets would be subject to wash sale rules, preventing traders from harvesting tax losses.

-🌟Mark-to-Market Accounting*: Traders could opt for mark-to-market accounting, taxing unrealized gains and losses annually.

The goal is to eliminate double taxation and provide clarity for crypto investors. The bill has bipartisan support, with Representatives Max Miller and Steven Horsford leading the effort .