🚨 ALERT: THE 2025 GUIDE TO CRYPTO STAKING TAXES 🚨#USCryptoStakingTaxReview
Staking is the ultimate passive income play, but the tax man is watching. As we head into 2025, tax authorities like the IRS, HMRC, and ATO have tightened the leash. If you’re earning rewards, you need to know these rules to avoid heavy penalties.
💰 STAKING IS TAXED TWICE
It’s not double taxation, but it is a two-step process:
Income Tax: The moment you receive rewards, they are taxed as ordinary income based on their Fair Market Value (FMV).
Capital Gains Tax: When you eventually sell or swap those rewards, you owe tax on the price difference from when you first received them.
⚖️ THE "DOMINION & CONTROL" RULE
You owe tax the second you have the ability to move or sell your rewards.
• Liquid Staking: Taxable immediately upon receipt.
• Locked Staking: Generally taxable only when the "unstake" or "withdraw" button becomes active.
🌍 GLOBAL SNAPSHOT 2025
• USA: Report on Form 1040 (Schedule 1). New for 2025: Wallet-by-wallet cost tracking is now mandatory for many.
• UK: HMRC treats rewards as income. Note: The CGT tax-free allowance has dropped to £3,000.
• Australia: 50% CGT discount applies if you hold your rewards for over 12 months before selling.
• Canada: Only 50% of capital gains are taxed, but professional stakers may be taxed as a business (100% of income).
⚠️ PRO TIP
Keep a CSV log of every reward drop. Most exchanges won't send you a 1099-DA unless you hit specific thresholds, but you are legally required to report every cent.
Don't let tax season burn your gains 📉🔥