Susana Hullinger OWhc

#USCryptoStakingTaxReview $BTC The Basic Rule: "Control and Dominance" The Internal Revenue Service (IRS) considers staking rewards taxable income the moment an investor gains "control" over them When is tax applied? Once the rewarded coins become transferable, sellable, or tradeable in your wallet Calculated Value: Tax is calculated based on the fair market value of the coin at the moment you receive it New Developments in 2025 Form 1099-DA: Starting in 2025, trading platforms and brokers will report directly to the IRS (Form 1099-DA), meaning that activities previously "hidden" will now be subject to scrutiny DeFi Rewards Scrutiny: It's no longer just about centralized platforms; there's a growing focus on staking rewards across decentralized protocols Types of Taxes In the US, storage rewards are subject to two types of taxes: Income Tax: Paid on the value of the rewards at the time they are received (ranging from 10% to 37%) Capital Gains Tax: If you hold the rewards and then sell them later at a higher price than the price on the day they were received, you will pay tax on the difference (the additional profit) Ongoing Legal Issues There is a wide-ranging legal debate (such as Jarrett v. United States) in which some argue that storage rewards are "created property" (like a farmer's crop) and should only be taxed when they are sold, not when they are created This tag also covers the latest developments in these issues Quick Tips for Investors in This Context: Accurate Documentation: Keep accurate records of every reward you receive, including the date and market price at the time Using Tax Software: It is recommended to use tools like CoinLedger or Koinly that integrate with wallets to generate automatic reports Distinguish between transfer and storage: Transferring your coins from one wallet to another is not a tax, but receiving "new coins" as a reward is the tax event $BTC $ETH