Nevertheless, staking reward is like your income, and it is target of tax by IRS, you will only be taxed if you claim your staking rewards and already get your initial capital deposited for staking back.
Because if you only claim staking rewards but your deposit is still on an exchange, you can lose it. Like FTX exchange collapse, Terra collapse, you will not get your initial money back.
Rather than get income, you end with loss. If it is during a calendar year, your tax report will end with big loss, not positive income so I don't believe it will be taxed.
I am not a lawyer and it is my thinking only.
Topic: Taxes on ETH staking rewards - page 2. (Read 263 times)
It's essential to approach tax-related matters with caution and seek professional advice or consult official sources. Tax laws and reporting requirements can be complex and may vary depending on individual circumstances. However, I can provide some general insights on this topic:geometry dash
1. Coinbase Reporting Staking Income: Coinbase's decision to report all staking income, including unrealized gains, to the IRS is a significant development. This means that individuals who have participated in staking activities on the platform may have tax obligations based on the value of their staking rewards, even if they haven't sold the rewards for fiat currency.
2. Tax Implications of Staking Rewards: Traditionally, taxes are due when cryptocurrency assets are sold or disposed of, resulting in a capital gain or loss. However, the taxation of staking rewards, especially when they remain as digital assets and are not converted to fiat currency, presents a unique challenge.
3. ETH Staking and Reporting: The specific case of Ethereum (ETH) staking, as well as the method used by Coinbase to determine the US dollar value of staking rewards reported to the IRS, could have significant implications for affected individuals.
4. Seek Professional Advice: Given the complexity and potential impact of these developments, individuals affected by Coinbase's reporting of staking income should consider seeking advice from tax professionals or experts with knowledge of cryptocurrency taxation.
It's important to determine the accuracy and implications of such reporting through reliable sources or professional advice, given the potential impact on tax obligations for cryptocurrency staking participants.
1. Coinbase Reporting Staking Income: Coinbase's decision to report all staking income, including unrealized gains, to the IRS is a significant development. This means that individuals who have participated in staking activities on the platform may have tax obligations based on the value of their staking rewards, even if they haven't sold the rewards for fiat currency.
2. Tax Implications of Staking Rewards: Traditionally, taxes are due when cryptocurrency assets are sold or disposed of, resulting in a capital gain or loss. However, the taxation of staking rewards, especially when they remain as digital assets and are not converted to fiat currency, presents a unique challenge.
3. ETH Staking and Reporting: The specific case of Ethereum (ETH) staking, as well as the method used by Coinbase to determine the US dollar value of staking rewards reported to the IRS, could have significant implications for affected individuals.
4. Seek Professional Advice: Given the complexity and potential impact of these developments, individuals affected by Coinbase's reporting of staking income should consider seeking advice from tax professionals or experts with knowledge of cryptocurrency taxation.
It's important to determine the accuracy and implications of such reporting through reliable sources or professional advice, given the potential impact on tax obligations for cryptocurrency staking participants.
Just wondering if anyone else has experienced this particularly nasty surprise from the IRS and Coinbase:
Long story short, Coinbase is reporting ALL staking income to the IRS, from way back when ETH staking went online in 2020. It's not just for 2023 or since April 2023, when you could first unlock and sell your ETH staking rewards.
Needless to say, that's going to be a hefty extra tax bill for those who staked since the start. Even worse, you get hit whether or not you sell your ETH rewards for US dollars. As I gather, Coinbase is basically using the ETH prices of April 2023 to decide the US dollar amount to report to the IRS (on form 1099-MISC).
This is the first time you need to pay tax in US dollars for staking rewards that were never sold and remain as ETH.
Can anyone confirm or disprove this? I hope I'm wrong, but somehow it doesn't seem so.
Long story short, Coinbase is reporting ALL staking income to the IRS, from way back when ETH staking went online in 2020. It's not just for 2023 or since April 2023, when you could first unlock and sell your ETH staking rewards.
Needless to say, that's going to be a hefty extra tax bill for those who staked since the start. Even worse, you get hit whether or not you sell your ETH rewards for US dollars. As I gather, Coinbase is basically using the ETH prices of April 2023 to decide the US dollar amount to report to the IRS (on form 1099-MISC).
This is the first time you need to pay tax in US dollars for staking rewards that were never sold and remain as ETH.
Can anyone confirm or disprove this? I hope I'm wrong, but somehow it doesn't seem so.
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